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PIERRE FABRE LABORATORIES ACTIVITY AND CORPORATE SOCIAL RESPONSIBILITY REPORT
2014 - 2015
From health to beauty
From
healt
h to b
eauty
PIERRE FABRE LABORATORIES ACTIVITY AND CORPORATE SOCIAL RESPONSIBILITY REPORT
2014 - 2015
From health to beauty
in 2015 and 2016, most of them abroad. These jobs will be the jobs of the future in our historical regions, as international development will enable us to increase production in our plants in France and develop our support services, mainly based in the Tarn and in the South West of France. The company can look forward to a bright future. Our Dermo-Cosmetics brands have been experiencing increasingly rapid growth for the past 3 years and our Consumer Health Care development potential is recognized by everyone. We are injecting some dynamism into our Pharmaceuticals portfolio, taking the time to seize the right opportunities and, in the long term, bringing innovative projects to fruition based on our R&D, where transformation has already begun. Above all, the company can count on our most important resources: the trust and commitment of our employees. Every year, our employees demonstrate this by joining
the employee stock ownership plan. This year in particular, an outstanding number of people signed up. This plan, which was set up by Mr. Pierre Fabre 10 years ago, now enables our employees to own 7.5% of the company shares, making them the second largest shareholder, after the Pierre Fabre Foundation. In accordance with Mr. Pierre Fabre's continuity mission, we will remain independent, we will remain present in the health and beauty industry, we will continue our research efforts and we will continue winning markets throughout the world. We will do this in line with our civic values, with our continued ambition to contribute to the economic, social and cultural development of our regions.
Pierre-Yves Revol, Chairman of the Pierre Fabre Foundation and Pierre Fabre Participations
CONTENTS
In December 2014, the company announced that it would be significantly reorganizing its pharmaceutical business as part of the new strategic plan, Trajectoire 2018, which was presented by Bertrand Parmentier and approved by all the governing bodies.Nine months later, as we are writing this editorial, an important point should be made: the company stands firm on its foundations and is growing.
Important organizational choices have had to be made about the company's future, from reducing our sales networks to reworking our Pharmaceutical branch's innovation model.
Reinventing ourselves,
to our valueskeeping true
REINVENTING OURSELVES, KEEPING TRUE TO OUR VALUES
ENTHUSIASTIC ENTREPRENEURS l 6 ATTENTIVE TO PEOPLE l 8 INSPIRED BY NATURE l 10 PROUD OF OUR ROOTS l 12
VISION AND STRATEGY PROFILE l 16 PROSPECTS l 20 GOVERNANCE l 22 AT THE HEART OF OUR GOVERNANCE l 24 COMMITMENT l 26 STRATEGY l 28 PHARMACEUTICALS l 30 DERMO-COSMETICS l 32 INTERNATIONAL l 34
FROM HEALTH TO BEAUTY MISSION l 38 INNOVATION l 40 INSPIRATION l 46 RIGOR l 48 ATTENTIVENESS l 50 PREVENTION l 52 AT THE HEART OF EAU THERMALE AVÈNE l 54 AT THE HEART OF ONCOLOGY l 56
RESPONSIBILITY AND CITIZENSHIP
PEOPLE l 60 REGIONS l 62 AT THE HEART OF MADAGASCAR l 64
NATURE l 66 ENVIRONMENT l 68 AT THE HEART OF THE CIRCULAR ECONOMY l 70 AT THE HEART OF BOTANICAL EXPERTISE PIERRE FABRE l 72
2014-2015 EVENTS
Pierre Fabre Pharmaceuticals was hit hard by the cost-saving measures taken to rebuild the National Health Insurance accounts, and did not find enough growth drivers in its R&D pipeline to renew its portfolio of products. Reorganization results in difficult staff cuts. In line with the commitments made when the project was announced, through sustained dialog between the company's stakeholders, we are significantly limiting the social impact via our reallocation policy, which few other companies would have rolled out with as much enthusiasm and determination as we have.
The company is also providing our Dermo-Cosmetics branch with the resources to continue its development and bolster its dynamic growth, in particular by opening new subsidiaries and increasing the rate of innovation. Several hundred jobs will be created by Pierre Fabre Dermo-Cosmetics
5
2005Opening the company's
share capitalto employees
20121st French company with over
10,000 employees to receive AFAQ 26000 certification, at "confirmed"
level for our contribution tosustainable development
2001Openingof the Pierre Fabrebotanical conservatoryCITES approved in 2010
1994Founding of the
Klorane Institute, a corporate foundation
for the protection and promotion of our natural plant heritage
1999Founding of the Pierre
Fabre Foundation, a government-recognized
public-interest organization
2013The Foundation, as
Mr. Pierre Fabre's sole legatee,
now owns 86% of the Group's shares
1989Launch of the cancer drug
Navelbine® made using tropical periwinkle
2010Opening of the R&D center on the Oncopole campusin Langlade (Toulouse)
Net sales €261,589k
Net sales €713,746k
Net sales €1,376,933kNet sales €2,108,000k
1,875
4,6518,111
10,000
1980
19902000
2014
Net sales €94k
Net sales €5,685k
Net sales €84,635k
1951Purchase of the pharmacy on place Jean Jaurès in Castres (Tarn)
1959Launch of Cyclo 3®, venotonic from butcher's broom (Ruscus aculeatus)
1962Founding meeting of Pierre Fabre Laboratories
1965Start of the dermo-
cosmetics activity
1970Opening of the 1st subsidiary in Spain
1971Creation
of Phytofilière®which would become
Botanical ExpertisePierre Fabre
1974Purchase of
the hydrotherapy center in
Avène-les-Bains (Hérault)
1968Opening of the 1st
research center in Castres
3
58
980
The history of Pierre Fabre Laboratories is first and foremost that of one man,
a dispensary pharmacist and an enthusiastic entrepreneur. Mr. Pierre Fabre grew his
dispensary into a pharmaceutical laboratory on an international scale, rooted in his home
region and remained loyal to the humanist values that he always defended.
ENTHUSIASTICENTREPRENEURS 50 YEARS OF INNOVATION
FROM HEALTH TO BEAUTY
1951
19621970
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TAKING CARE OF THE WORLDAROUND US
A humanist dispensary pharmacist, always ready to listen, Mr. Pierre Fabre made the human being his highest concern. He had a constant concern for the well-being of patients and consumers. He built long-lasting relationships with his customers and partners. He had both a benevolent and challenging relationship with his employees. Thanks to this relationship, he was able to share his entrepreneurial passion with them and take care of as many people as possible. Today these values underlie our unique and original development model.
ATTENTIVETO PEOPLE
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Mr. Pierre Fabre had a passion for plants. This passion was evident when he presented new projects and when he held impromptu discussions. One day, when making a particularly difficult decision, he exclaimed: "Do you realize what you are asking of me? It is as if you were to ask me to cut down a tree." That said it all: demonstrating the carnal side of this passionate and emotional attachment.
He loved plants for their beauty but not that alone. He was fond of their "content." He loved getting to know their oddities. He was fascinated with the living part of the plant, its history, its ties with mankind and its environment. For him, discovering a new plant was a real pleasure, synonymous with a new story to be written.
He favored oat. He was able to provide this grain, used to feed horses, with a noble status. In the cosmetics world, which favors sophistication, and that of dermatology, which relies above all on chemicals, it was a pleasure for this man, who appreciated rural life, to be able to make this little plant into an authentic active ingredient designed for fragile skin and recognized by dermatologists.
INSPIREDBY NATURE
A SOURCE OF CREATIVITY,BOTH ENDLESS AND DELICATE
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TERRE D'AVOINE - LAND OF OATSThe Terre d’Avoine site is nestled at the heart of the Tarn, in Puylaurens. It is a fortified farmhouse dating back to 1640, surrounded by fields of Rhealba® Oat, an oat variety with exceptional dermatological properties. Organized in collaboration with the Natural History Museum of Toulouse, inaugurated in 2013, this place for sharing knowledge on oats and their dermatological properties tells the story of the A-Derma brand.
LES CAUQUILLOUSIn 2000, the headquarters for our dermo-cosmetics activity were transferred to Lavaur (Tarn), to a place called les Cauquillous. The building, with its futuristic curves inspired by the company logo, is surrounded by a forest and a Mediterranean garden consisting of about thirty varieties of medicinal plants.
TOULOUSE-ONCOPOLEBuilt on the rubble of the AZF factory, the Oncopole project is a flagship for innovation and public health for the whole of the Midi-Pyrénées region. The Pierre Fabre Research and Development Center was the first to settle there in 2011. The Group thus asserts its drive to be an internationally recognized player in oncology while focusing its R&D efforts in France and, more specifically, in its region of origin.
SOUAL PLANTLocated about ten kilometers from Castres and opened in 1968, the Soual plant is the historic industrial site of Pierre Fabre Laboratories. Dedicated to dermo-cosmetics, it expanded by 13,000 m² in 2012, particularly to incorporate the production of Sterile Cosmetics.This expansion was an opportunity to experiment with the HQE® approach in industrial buildings.
CASTRES OLYMPIQUEThe company supports Castres Olympique for two reasons: unconditional attachment to the town of Castres and the similarity between the values of rugby – solidarity, synergy, respect for others, a winning spirit – and those of our company.
LE DOMAINE DU CARLA - THE CARLA ESTATEBuilt in 1875, it is an exceptional place perched above Castres and surrounded by nature. Dedicated to meetings and exchanges, it is the place where the Group's partnerships materialize. Every year, it receives some 6,000 visitors from all over the world.
PROUDOF OUR ROOTS
DEVELOPING FROM WHAT WEHAVE BUILT HERE, ON OUR LAND
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I HAVE MORE OFA TASTE FOR ACTION,FORECASTING,PREPARINGFOR THE FUTURE,THAN FOR LOOKING BACKON THE PAST
MR. PIERRE FABRE DECEMBER 2006
RESPONSIBLE GROWTHPURSUING
VISION& STRATEGY
PROFILE l 16
PROSPECTS l 20
GOVERNANCE l 22
AT THE HEART OF OUR GOVERNANCE l 24
COMMITMENT l 26
STRATEGY l 28
PHARMACEUTICALS l 30
DERMO-COSMETICS l 32
INTERNATIONAL l 34
1514
5
A-DERMA
EAU THERMALE AVÈNE
DUCRAY
ELANCYL
GALÉNIC
KLORANE
RENÉ FURTERER
GLYTONE (USA)
DARROW (Brazil)
PIERRE FABRE DERMATOLOGIE
DERMO-COSMETICS
16,000PLANT SAMPLES
used in our researchprograms, the largest
private collectionin the world
3 to 5NEW PLANT-BASED
ACTIVE INGREDIENTSdeveloped each year
PLANT-BASED ACTIVEINGREDIENTS
patented
PLANTS
Plant-based activeingredients from over
220
51
CONSUMER HEALTH CAREPIERRE FABREHEALTH CARE
PIERRE FABREORAL CARE
NATURACTIVE
3KEY ACTIVITIES
PRIORITY AREAS FOR INNOVATION
ONCOLOGY
ETHICS
DERMO-COSMETICS
DERMATOLOGICAL Rx
CONSUMER HEALTH CARE
ONCOLOGY
CENTRAL NERVOUS SYSTEM
Urology, female health,neuropsychiatry, cardiology,
pulmonology, allergologyand rheumatology
€2,108M
€943M
€915 M
€1,149MDermo-Cosmetics
Pharmaceuticals
€44MOther activities
€1,165M
FRANCE
INTERNATIONAL
3No.
PHARMACEUTICALLABORATORYIN FRANCE
DERMO-COSMETIC LABORATORY WORLDWIDE
DERMO-COSMETIC LABORATORY IN EUROPE
NET SALES
PHARMACEUTICALS
2No.
1No.
PROFILE KEY FIGURESAS OF DECEMBER 31, 2014
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PRODUCTS DISTRIBUTED IN
130 COUNTRIES
98%PRODUCTION
RESEARCH
is carried out in France
is carried out in France
of our
HECTARES
Bio
of farmland dedicated toorganic farming in the
Tarn region
of our
100%
200
50
25REGION
including
SITES
SITES IN THE
INPRODUCTION AND PACKAGINGOF PHARMACEUTICALSAND HEALTH CARE PRODUCTSGien and Château-Renard (Loiret)Bien Hoa (Vietnam)Henderson (Nevada - USA) - Tunis (Tunisia)
PHYTOTHERAPYAND AROMATHERAPYCahors (Lot)
Pau (Pyrénées-Atlantiques)ASEPTIC CYTOTOXIC PRODUCTION
HARD-BOILED PHARMACEUTICALLOZENGESAignan (Gers)
PRODUCTION AND PACKAGING OFDERMO-COSMETICSSoual/Mazamet (Tarn) - Avène (Hérault)Bien Hoa (Vietnam) - Areal (Brazil)Henderson (Nevada - USA)
PRODUCTION OF ACTIVE INGREDIENTSPHARMACEUTICALS, NUTRACEUTICALSAND COSMETICS Gaillac (Tarn)Palézieux (Switzerland)Virrey del Pino (Argentina)
RESEARCH CENTERS
DISTRIBUTION CENTERS
PIERRE FABRERESEARCH AND DEVELOPMENTCENTER (CRDPF)
Toulouse
PIERRE FABRE IMMUNOLOGY CENTER (CIPF)
Saint-Julien-en-Genevois
PIERRE FABRE RESEARCH CENTER (CRPF)Central nervous system, Consumer Health Care, Pre-clinical Development and Translational Medicine
Oncology, Dermatology, New Chemical Entities,Pharmaceutical, Pre-clinical and Clinical Development, Translational Medicine
Oncology, New Biological Entitiesand Biotechnological Product
Castres - (Péraudel and Campans)
PIERRE FABRE DERMO-COSMETICS RESEARCH CENTER AND SKIN RESEARCH CENTERToulouse - (Hôtel Dieu and Vigoulet)
PLANT-BASED ACTIVE INGREDIENTRESEARCH UNITSGaillac and Soual
WATER RESEARCH UNITSAvène and Banyuls
PRODUCTION CENTERS
10,000 EMPLOYEES
SUBSIDIAIRESIN 43 COUNTRIES
2,050EUROPE
950AMERICA
400AFRICA + 1,500 external
employees in China
300ASIA/OCEANIA
DERMO-COSMETICS AND HEALTH CAREMuret (Haute-Garonne)
PHARMACEUTICALS AND HEALTH CAREUssel (Corrèze)
6,300FRANCE
FOCUSFRANCE
PROFILE KEY FIGURESAS OF DECEMBER 31, 2014
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BertrandPARMENTIERCEO Pierre Fabre SA
questions for...5What are the outlines of this strategic plan?BP: Trajectoire 2018 is a plan based on inno-vation, international development and the creation of sustainable value. It is part of a renewed vision of the "from Health to Beauty" continuum, the strategic positioning that has defined the company from our very beginnings. We are currently highlighting the relevance of this vision, as it makes us stand out from the competition. We are the only dermo-cosmetics laboratory to also be involved in dermatological Rx and are therefore able to have a compre-hensive vision of the needs of dermatologists and their patients. Similarly, we are in an ideal position to develop the company in Consumer Health Care, with growth drivers that borrow from both the Pharmaceuticals and Dermo-Cosmetics business models. Based on this continuum, Trajectoire 2018 aims to instill new economic balance into our activities, by quickly restoring the competitiveness of our Pharmaceutical branch, without curbing the strong ambitions we have for the Dermo-Cosmetics branch. It also aims to provide us with the financial capacity to go and find growth drivers from outside the Group, espe-cially for Pharmaceuticals.
What measures were taken to achieve this new balance? BP: As the top priority, we completely re-engi-neered our pharmaceutical R&D as well as all of our medical promotion networks in France. At the same time, we are taking another look at the fundamentals of our Consumer Health Care franchise, which plays a pivotal role in our Health to Beauty continuum, and must enable us to benefit from the strong growth in the OTC and natural health care markets, now and in the future. In Dermo-Cosmetics, we are increasing our investments abroad, as part of our internal development strategy, based on the medical-ization and advice model that has always been our strength. Although the concept of der-mo-cosmetics is generally well entrenched in Western Europe, we think that it still holds a lot of potential in other regions of the world, notably Asia, where care rituals are both so-phisticated and natural. The success of our Eau Thermale Avène brand in China is the best example of this. Another immediate priority relates to digital technology, which is both an external and internal growth accelerator as it can help to strengthen our corporate and brands’ promise and boost collaboration within our teams and with our partners.
To conclude, what message would you like to convey? BP: We made a commitment to make the necessary changes while remaining loyal to the humanist values of the Group and preserving our local presence in the South West of France, especially in the Tarn. Our aim is to strengthen the Group's independence, favoring the
creation of sustain-able value over short-term profit, while ensuring that our main shareholder, the Pierre Fabre Foundation, has the means required to pursue its mission in the public interest.
We intend to continue rising to the challenge of these demanding requirements, via collec-tive governance methods.
We are in an ideal position to develop the company in Consumer Health Care, with
growth drivers that borrow from both the Pharmaceuticals and Dermo-Cosmetics
business models.
How did the Group perform in 2014? BERTRAND PARMENTIER: Our net sales were up by 5% (comparable data), spurred on by strong international growth, up by 7.5%. Our financial situation is sound overall, with a financial debt reaching its lowest level at 62 million euros and EBITDA of around 220 million euros. Remarkably, our Dermo-Cosmetics branch is continuing to develop its business both in France (+4.5%) and abroad (+8.2%). The Pharmaceutical branch held strong, thanks to the international market (+6%) and industrial subcontracting (+9%). Despite all of this, our net sales continue to fall in France (-2.9%) in a regula-tory context where the public authorities are requiring the pharmaceutical industry to contribute to the highest pro-portion of National Health I n s u ra n c e co st- s av i n g measures. Year after year, this trend has been in-creasing. It is resulting in price cuts, lower reimburse-ment rates and an increase in generic drugs, which strongly affects us due to the maturity of our portfolio. We will have to keep adapting our Pharmaceuticals business model to these structural changes.
What gave rise to the Trajectoire 2018 plan announced in December 2014? BP: Mr. Pierre Fabre left us much more than a company. He left us a legacy of values and entrusted us with a mission that we must accomplish. With this in mind, we worked to create a new strategic plan to reformulate a common company vision and unite all stakeholders around a single project, which is economically sound, and demonstrates social re-sponsibility. We are witnessing an imbalance in the respective contributions of our two activities: our Dermo-Cosmetics branch is undergoing
strong growth but our Pharmaceutical branch is suffering from the effects of its R&D that is not productive enough, and a great deal of regulatory pressure on the Pharmaceutical market, es-pecially in France, where we
still conduct 50% of our business. We have reviewed our strengths and our weaknesses, in light of the prospects of our markets in years to come, so that we can better assess and identify the challenges that lie ahead. This gave rise to Trajectoire 2018. The strategic guidelines of this plan were presented to and approved by the various governing bodies of the Group.
PROSPECTS INTERVIEW
We will have to keep adapting our Pharmaceuticals business model to
these structural changes.
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Pierre Fabre Laboratories has a unique shareholding structure that guarantees its continuity and independence, in line with
the values of our founder. The majority shareholder is the Pierre Fabre Foundation. lt has also developed its employee stock ownership plan, and employees thus form the second-
largest group of shareholders. This structure is unique in France and is aimed at ensuring the long-term stability of the
company's capital.
THE PIERRE FABRE FOUNDATIONlt is the Group's main shareholder (holding 86% of the shares) through its controlling company, Pierre Fabre Participations (PFP). As the Foundation is dedicated first and foremost to its public interest mission, it delegates the supervision of the Group's management to its subsidiary Pierre Fabre Participations. lt is chaired by Pierre-Yves Revol.
PIERRE FABRE PARTICIPATIONSThe controlling company validates the Group's strategy, appoints its main executives and ensures that the continuity mission defined by Mr. Pierre Fabre is respected:• Ensuring the Group's independence• Maintaining both the Pharmaceuticals and
Dermo-Cosmetics activities• Reinvesting a significant proportion of profits
in R&D• Prioritizing long-term goals over short-term
financial profit• Maintaining the Group’s footprint in its birth
region and its culture of corporate social responsibility
• Allowing the Pierre Fabre Foundation to pursue its objectives through a suitable dividend payment policy
PIERRE FABRE SAIt is the Group's holding company. It elaborates the Group's overall strategy, consolidates and coordinates its activities, and hosts support functions and shared services. Its Supervisory Board is chaired by Jean-Jacques Bertrand.Pierre Fabre Pharmaceuticals and Pierre Fabre Dermo-Cosmetics are the main subsidiaries of Pierre Fabre SA, and are in charge of the pharmaceutical and dermo-cosmetic businesses respectively.
7.3% 6.7%
The Pierre Fabre SA Supervisory Board is made up of:
Seated from left to rightBruno BousquiéPhilippe FaureMaître François ChalleilDominique Bazy
Standing from left to rightChristophe Latouche - Chairman of the Pierre Fabre Employee Shareholder Plan Supervisory BoardJacques FabreRoch DoliveuxPierre-Yves Revol - Vice-chairmanJean-Jacques Bertrand - ChairmanBertrand Parmentier - Group CEOJean-Luc Bélingard
GOVERNANCEGUARANTEEING THE LONGEVITY AND INDEPENDENCE OF THE COMPANY
SUPERVISORY BOARD
Bertrand PARMENTIER Group CEO
Frédéric DUCHESNECEOPharmaceuticals Division
Éric DUCOURNAUCEODermo-Cosmetics Division
Michael DANONSenior Vice-PresidentLegal, Pharmaceutical & Public Affairs
Luc PÉLIGRYSenior Vice-PresidentFinance & Operations
Thierry DENJEANSenior Vice-President Human Resources
Marc ALIASDirector,Corporate Communications
EXECUTIVE COMMITTEE
PIERRE FABRE LABORATORIES (treasury stock)
PIERRE FABRE LABORATORIES
PIERRE FABREFOUNDATION
(Majority shareholder)
EMPLOYEE SHAREHOLDER
PLAN
(controlling company)
PIERRE FABRE PHARMACEUTICALS
PIERRE FABRE DERMO-COSMETICS
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TRAINPREVENTSUPPORT
CARE
TRAINING PROFESSIONALS
THE FIGHT AGAINST SICKLE-CELL DISEASE
ACCESS TO HEALTH CARE
TROPICAL DERMATOLOGY
2015 PROJECT
Training pharmacists is extremely important to the Foundation, as they are responsible for the quality of prescription drugs. The trainers and the health care professionals we train can subsequently pass on their knowledge and guarantee autonomy for the health care system. The Foundation also aids other actions, such as creating teaching units and building or restoring premises.
To improve access to health care, we support medical centers, for example in Senegal and Lebanon, but we also seek new awareness-rais-ing and communication methods, in particular via eHealth. These new solutions are a major advantage for the Foundation in improving the quality of health care in areas where there is a shortage of personnel and infrastructure and in enabling remote training.
Sickle cell anemia is a serious, widespread genetic disease, which is a real challenge for countries in the southern hemisphere. To improve access to health care and train caregivers, the Foundation supports and develops local organizations in our regions of action.
Tropical dermatology is a vital new area of inter-vention for the Foundation, as skin diseases are very common in the southern hemisphere. The Foundation is therefore focusing its action on two areas: continuing to eliminate the most threaten-ing endemic tropical diseases and treating as many people as possible for more benign ailments. The Foundation is therefore investing in training medical staff and combating noma, a childhood disease that is not very well known, but devastating.
With a solely humanitarian aim, the main purpose of the Pierre Fabre Foundation, a government-recognized public-interest organization whose mission is to improve access to quality medication and care in developing countries. Its programs focus on the main areas:
Pierre Fabre Foundation
15 years of commitment to health care professionals in South-East Asia and Africa
AT THE HEART OFOURGOVERNANCE
The Ruscus plan, given its name as a tribute to the first plant used by Mr. Fabre when the company was created, is a major factor in the way the Group organizes its capital. It also helps develop a different kind of corporate culture, which upholds the values of our founder: independence, entrepreneurial drive, continuity and team spirit. With this stock ownership plan, employees become joint owners of the Group and are more closely involved in corporate life and the company's growth.The plan was developed to enable employees, in particular employees with modest incomes, to build up their assets. Through this measure, Mr. Pierre Fabre wanted to ensure that, at the end of their careers, workers were able to receive the equivalent of at least one year's salary, taking the
company matching contribution into account.The Ruscus plan was rolled out in France in 2005, and in 2008 it was extended to six European countries: Germany, Belgium, Spain, Greece, Italy and Portugal.In the years to come, Ruscus will be available to other subsidiaries.
For 10 years, owing to the desire of Mr. Pierre Fabre, Group employees are highly involved in corporate life via an employee stock ownership plan: the Ruscus plan. Employees and the Pierre Fabre Foundation are the Group's only shareholders. This situation is one of a kind on the French industrial scene, guaranteeing the Group's independence and enabling its capital to be controlled.
I WANTED TO ENABLE PIERRE FABRE
EMPLOYEES TO ACCESS SHARE CAPITAL,
TO PASS ON MY PRIDE AND
ENTHUSIASM TO THEM
Ruscus plan
10 years of employee stock ownership
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85.4%
92%
95.8%81.7%
81.1%
79%
90.5%
91%OF EMPLOYEES ARE SHAREHOLDERS(AS PART OF THE STOCK OWNERSHIP PLAN)AND HOLD
7.3% OF THE GROUP'S CAPITAL
% OF EMPLOYEES BEING SHAREHOLDERS
MR. PIERRE FABREJUNE 2005
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- 2015 -
CODE OF ETHICSPIERRE FABRE LABORATORIES
From health to beauty
Our company strives to adhere to the principles of business ethics and to work with partners sharing these principles. To do so, we adopted a Group Code of Ethics. This is a document that lists the commitments, practices, and behaviors chosen and adopted by our company and which will govern both its internal and its external relationships. The code of ethics serves as a point of reference and officially defines the ethical obligations of all employees to ensure they act appropriately and make responsible decisions in their day-to-day work.
It is based around 6 main themes:• Meet all the needs of the users of our products, from health
to beauty • Develop a trustworthy relationship with health
professionals • Act ethically with the public authorities and all stakeholders• Be a socially responsible company committed to preserving
the environment • Recognize the importance of our employees who play
a crucial role in the success of our development and commitments
• Protect our assets to guarantee our company’s long-term success
Code of Ethics
GOVERNANCE & ETHICSThe fact that our company belongs to a foundation that is a government-recognized public-interest organization, and the values inherited from our founder including pharmaceutical ethics – which we make sure to place at the heart of our actions – guide us in achieving our mission on a daily basis: "caring for the human being as a whole."
INNOVATION & HEALTH/BEAUTYIn accordance with our mission, we design and develop innovative solutions that contribute to the well-being of patients and consumers, from health to beauty. We achieve this by cooperating with health care professionals, our trusted partners worldwide. Our common goal is a major worldwide challenge: promoting access to health care and taking positive action on health issues. In addition, we support charity projects focusing on the same issues.
ECODESIGN & INDUSTRIAL FOOTPRINTThroughout the life cycle of our products, from the purchase of raw materials and their production to being placed on the market and their use, we ensure that our actions fit in with respect for our suppliers and reduce our impact on the environment.
KNOWLEDGE & NATURE CONSERVATIONNature is a source of inspiration, innovation and knowledge, our activities are built around its wealth. Today, almost 70% of the company's net sales rely on the marketing of products whose active ingredient comes from nature. Therefore, whether it be through the development of natural active ingredients or through the use of processes resulting from plant-based chemistry, respect for natural resources is profoundly rooted in our values.
PEOPLE & REGIONSWe listen to our employees, our economic partners and local communities in the regions where we operate, and we fit this dialog into a process based on constructive collaboration and a sense of joint responsibility. Employees and partners alike contribute to our influence and performance. In return, we support the professional development of our employees and, insofar as possible, contribute to the economic, social and cultural dynamism of the regions where we operate.
FIND OUT MORE SUSTAINABLE DEVELOPMENT www.pierre-fabre.com/en/sustainable-development
FIND OUT MORE GOVERNANCE AND ETHICS www.pierre-fabre.com/en/ethics-and-codes-conduct
1stAFAQ 26000 ASSESSED PHARMACEUTICAL AND DERMO-COSMETIC LABORATORY
COMMITMENTThe shareholding structure of the Group, mainly held by a government-recognized
public-interest foundation, gives us the independence we require to ensure our
activities are in line with a long-term vision and encourage responsible growth. We thus
place the importance of corporate social responsibility (CSR) at the heart of our
development model, loyal to the humanist and civic values of our founder.
In 2012, AFNOR Certification, an independent organization, assessed our
CSR approach according to the AFAQ 26000 method and granted us the
level "confirmed", which was a first for a pharmaceutical laboratory and a French
company with over 10,000 employees.
PURSUING OUR SOCIALLY RESPONSIBLE APPROACH
• Governance & Mission• Code of Conduct• Safety & Quality
Requirements• CSR Management
• Pharmaceutical Innovation & Culture• Prevention• Support for health care professionals• Involvement in the public health system• Health & Solidarity
• Nature as a source of innovation• Research applied to nature• Sharing of knowledge• Conservation & preservation
of nature efforts
• Integrated ecodesign policy• Responsible purchasing• Pollution reduction
and resource preservation• Mobilization of employees
• Skills development• Health & Safety of employees• Equity• Economic and social development
of territories
Innovation& Health/Beauty
Governance& Ethics
Gouvernance & Éthique Knowledge
& NatureConservation
Ecodesign& IndustrialFootprint
People& Regions
Innovation & Santé/Beauté
Gouvernance & Éthique
Connaissance & Préservation de la Nature
Écoconception & Empreinte industrielle
Hommes & Territoires
RELATED ISSUES
STRATEGIC PRIORITIES
in accordance with the ISO 26000 international standardon corporate social responsibility
Consult our CSR report online in the sustainable development section. www.pierre-fabre.com/en/sustainable-development26 27
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To stabilize and strengthen our Health-Beauty continuum and give the Group the capability to fetch growth accelerators at the earliest, our 6 priorities are as follows:
1. Improve prescription drugs’ operational and financial room for maneuver
2. Build a strong multi-local Consumer Health Care franchise
3. Reinforce the positioning of Dermo-cosmetics by strengthening the brand portfolio around Eau Thermale Avène and gaining market shares
4. Adapt the Health-Beauty model to local markets, namely by promoting the Pierre Fabre promise on a broader range of channels and by enriching digital content
5. Better serve our growth markets.
6. Make our operational model more efficient by improving the robustness of our processes, the productivity of our tools and the agility of our organization
Trajectoire 2018In December 2014, Pierre Fabre
Laboratories presented their new strategic plan, named Trajectoire 2018,
based on innovation, international development and sustainable
value creation.
Strongly confirming our strategic positioning on the continuum of activities "from health to beauty", which has always set the Group apart, Trajectoire 2018 acknowledges the contrasting results of our two branches of activity. While the Dermo-Cosmetics branch, which accounts for 55% of our net sales, has seen sustained growth, contributing to the bulk of the Group's earnings, the Pharmaceutical branch is now very fragile. This is due to the double effect of insufficiently productive Research & Development (R&D) and a major loss of business in France as a result of the extreme regulatory pressure exerted on the prescription drugs industry (lower reimbursement rates of mature drugs, price cuts, rapid rise of generic drugs, etc.).
Pierre Fabre is currently the 6th largest pharmaceutical laboratory in Africa.
"FROM HEALTH TO BEAUTY": A STRATEGIC POSITION THAT SETS US APARTAs a dispensary pharmacist, Pierre Fabre transposed the medicinal mission on an industrial scale with the drive to provide a global response to the therapeutic needs and well-being of patients. Pierre Fabre has a continuum of activities that run from Rx pharmaceuticals to dermo-cosmetic care, oral care, family health care and natural health care. To put this unique "from health to beauty" approach into practice on a daily basis, we have always relied upon health care professionals whose confidence constitutes our first and foremost asset. Through the diversity of our activities, we provide them with comprehensive therapeutic solutions allowing them to treat the main condition and its secondary effects. This is the case, for example, for hospital cancer wards. We offer them dermatological care protocols to help reduce the secondary effects caused by chemotherapy and radiotherapy.
In 2014, Pierre Fabre Laboratories generated 2.1 billion euros in net sales. The Group benefits from its presence in the main emerging countries where the
pharmaceutical and cosmetics markets are experiencing strong growth that is set to
continue over the coming years.
STRATEGYDEVELOPING FROM HEALTH TO BEAUTY WHILE RESPECTING OUR VALUES
ORIGINAL AREAS OF GLOBALLY RECOGNIZED EXCELLENCEWhen it comes to active pharmaceutical ingredients, the Group especially excels in two areas. On the one hand, research on natural active ingredients, on the other hand, research on biological active ingredients. Using the largest collection of plants available in the industry, Pierre Fabre researches new active plant ingredients for both pharmaceuticals and dermo-cosmetics. To our knowledge, no other pharmaceutical or cosmetic laboratory brings together such a continuum of expertise in botany, agronomics, extraction of plant-based active ingredients, formulation and preparation of plant-based pharmaceuticals and cosmetics. Likewise, through its Eau Thermale Avène brand, Pierre Fabre has acquired unparalleled expertise in understanding the dermatological mechanisms of thermal spring water. In addition, over the past 15 years Pierre Fabre pharmaceutical research has become a recognized player in the field of targeted biotherapies (monoclonal antibodies, immunoconjugates and cell therapies). The dermo-cosmetics branch can also rely on our cutting-edge biotechnology expertise when developing new skin care solutions based on biological active ingredients.
COMPREHENSIVE MASTERY OF THE DRUG VALUE CHAINAnother asset of the Group is its comprehensive and integrated mastery of the drug value chain, from laboratory research to medical promotion, and the key steps of clinical development, manufacture of active pharmaceutical ingredients, packaging and distribution. This expertise allows us to build partnerships of a diverse nature with the largest international laboratories or innovative biotech companies. We have reached a globally recognized level of technical skill in the development and manufacture of natural or biological active ingredients, cancer drugs (particularly in an injectable form) and hard-boiled pharmaceutical lozenges. Today, these areas of expertise allow us to propose an integrated industrial subcontracting offer to the most demanding American, European or Japanese laboratories.
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Frédéric DUCHESNECEO
Pierre Fabre Pharmaceuticals
As part of the Trajectoire 2018 plan, what are the priorities for the Pharmaceutical branch? FRÉDÉRIC DUCHESNE: First, we must restore our commercial productivity in France. We have to adapt our networks to the reality of our product portfolio and give them the means to meet the changing ex-pectations of our customers. In particular, we are going to redirect some of our investments in Consumer Health Care to pharmacists and the pa-tient-consumer. At the same time, we need to revi-talize our R&D by meeting three targets: being better connected to the reality of the market and more open to external innovation, improving our opera-tional efficiency and developing a more competitive portfolio of projects with high medical and economic value. Renewing our very mature portfolio is crucially important. Apart from revitalizing R&D, which should yield results in the medium term, we are looking for growth drivers to complete our portfolio from today, through acquisitions and licensing agreements. Lastly, we are going to increase our industrial invest-ments to make our CDMO* activity an increasingly significant growth accelerator.
Which treatment areas will receive R&D investment? FD: After an in-depth analysis of the market and our strengths and weaknesses, we decided to focus on 4 treatment areas: oncology, dermatological Rx, the central nervous system and Consumer Health Care. In oncology, our first investment area, we will target the indications that are awaiting suitable treatment responses by standing out from other treatments available, and we will prioritize the development of new biological entities. We have gained renowned scientific expertise in monoclonal antibodies and immunoconjugates, which enables us to contribute to the revolution underway in targeted biotherapies. In short, we will continue all our investments in R&D, but these investments will be better targeted.
What are your plans for international markets?FD: Our objective is to achieve 70% of our sales in these markets within 5 years. Currently, France accounts for over 50% of our business. To do so, in addition to our Oncology franchise, which is already making a global impact, we have to internationalize the Consumer Health Care franchise, which only generates 25% of its sales outside France, and seize the opportunities for outside growth on our Ethics franchise. We have the advantage of already being present in all areas of growth worldwide, in Europe and also in the 4 BRIC countries. In Asia and Latin America, Oncology will remain our priority. In Africa, where we have a historical presence in French-speaking countries, we are one of the top 10 phar-maceutical laboratories. We are counting on speeding up our development in Africa, in particular for tropical diseases, as proven by the license obtained in early 2015 to market an antimalarial drug in French-speaking and English-speaking Africa.
questions for...
*CDMO: Contract development and manufacturing organization (development and production service for other pharmaceutical laboratories)
ONCOLOGY ETHICS CONSUMER HEALTH CARE
PHARMACEUTICAL BRANCH
915MILLION EUROSnet sales in 2014
No. 1IN ORAL CAREon the French pharmaceutical market
Originating in the pharmaceutical sector over 50 years ago, we are continuing to
develop our pharmaceuticals business, with a desire to provide patients with treatments
in the following areas: Oncology, Ethics and
Consumer Health Care.
PHARMACEUTICALSPURSUING INTERNATIONALIZATIONAND INNOVATION
RECOGNIZED PLAYER FOR OUR GROWTH FRANCHISESCommercially, in France and abroad, the Group has decided to organize itself around 3 growth franchises:The Oncology franchise is made up primarily of proprietary drugs for chemotherapy, such as Navelbine®, the Group’s leading pharmaceutical brand in terms of net sales, and Javlor®. The Ethics franchise, on the other hand, offers a wide range of drugs in urology, female health, neuropsychiatry, cardiology, pulmonology-allergology and rheumatol-ogy. The Consumer Health Care franchise puts a wide range of prescription drugs and OTC products at the disposal of pharmacists, health care professionals and patients, in three main areas: family health care (Structum, Drill, Pedi-Relax, Nicopatch, etc.), oral care (Elgydium and Eludril) and natural health care (Naturactive).
The fourth franchise is the CDMO* business, a significant growth driver for our pharmaceutical branch.
MAKING INNOVATION OUR PRIORITYWe dedicate a level of investment to R&D which is at the higher end of the industry: 17% of our pharmaceutical net sales in 2014. Conscious of heavy investments required when developing a new drug, we are focusing our research and development efforts on 4 treatment areas: oncology, dermatological Rx, the central nervous system and consumer health care.
Of these research areas, oncology is our top priority. Our Research and Development Center at the Toulouse Oncopole campus and our Immunology Center at Saint-Julien-en-Genevois are working on
cytotoxic molecules, targeted therapies and mono-clonal antibodies for cancer treatment. The two centers combine their expertise in the fields of the future: immunoconjugates on the one hand and onco-immunology on the other. Onco-dermatology is also a relevant field of research for the Group, at the crossroads of our expertise in oncology and dermatology.
*CDMO: Contract development and manufacturing organization (development and production service for other pharmaceutical laboratories)
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Éric DUCOURNAU CEO
Dermo-Cosmetics Division
What are PFDC's ambitions within the framework of the Trajectoire 2018 plan? ED: In 2014, our net sales increased by 6.8%, excluding currency impacts, a much better perfor-mance than the market, which grew by 3.9%. As part of Trajectoire 2018, we suggested pursuing this momentum and speeding it up, by aiming for €500 million in growth by 2018. Our potential to win market shares is still high, in particular in Asia, Latin America, Northern Europe and Eastern Europe. Over the past 2 years, we have opened subsidiaries in South Korea, Chile, South Africa and Australia, and other countries will soon join us and add to our global footprint. For all our brands, we are going to step up the pace of innovation, be this for active ingredients, formulations or packaging.
These new products will account for half of the expected growth, the rest will come from opening new geoprahies and launching brands where they are not yet present. Eau Thermale Avène, the No. 2 brand on the dermo-cosmetics market and the leading brand in Europe and Asia, will notably launch products created specifically for the Asian, Brazilian and North-American markets, based on what we achieved with our "toque seco*" sun care products in Brazil.
questions for...
PFDC is currently the No. 2 dermo-cosmetics laboratory in the world. What are the keys to this success?ERIC DUCOURNAU: Our portfolio covers all consumer needs from the pharmacy channel for skin care, scalp care and hair care: a dermatological Rx brand (Pierre Fabre Dermatologie), pure dermo-cos-metic brands (Eau Thermale Avène, Ducray and A-Derma), two family-oriented brands (Klorane and Elancyl) and two premium positioning cosmetics brands (René Furterer and Galénic). We are adding to this global offering with local brands in Brazil (Darrow) and the USA (Glytone). * dry feel
1,149MILLION EUROSof net sales in 2014generated by the Dermo-Cosmetics branch
No.1IN DERMO-COSMETICS
DERMO-COSMETICS
As the inventor of dermo-cosmetics, Pierre Fabre Dermo-Cosmetics offers innovative
skin care and hair care solutions following a sacrosanct principle: making beauty ethical. Pierre Fabre Dermo-Cosmetics designs care
products to the highest standards of efficacy and safety, thanks to its leading-edge expertise
in natural substances, thermal dermatology, biotechnologies and sterile cosmetics. As the
only international dermo-cosmetics player present in the field of therapeutic dermatology,
we are making this franchise the flagship for our relationship with dermatologists.
LEADER IN ETHICALBEAUTY
RECOMMENDED PRODUCTS TO MEET THE SPECIFIC NEEDS OF EVERYONEOur dermo-cosmetic products are developed, clinically tested and manufactured according to the standards set out by the pharmaceutical industry. Often recommended by a dermatologist, they can assist or facilitate compliance with a drug treatment. Due to their highly technical nature, they are sold exclusively in the pharmacy channel or equivalent. Recommended and explained by the pharmacist, the pharmacy personnel or consultants trained in diagnosis (particularly in countries lacking a strong pharmacist culture like Japan or China), they provide a suitable response to the specific needs of everyone.
STRENGTHENING OUR EUROPEAN LEADERSHIP AND OUR CHALLENGER STATUS ON A GLOBAL LEVELAs leader of the dermo-cosmetics market in Europe and No. 2 worldwide, our ambition is to strengthen our positions by adapting to local distribution models wherever necessary, while maintaining our unique position of profoundly ethical beauty. To do this, we have made strategic decisions to:• Internationally develop our Eau Thermale
Avène, Ducray, A-Derma, Klorane, René Furterer and Galénic brands in order to generate at least 75% of net sales outside of France for Eau Thermale Avène and between 55% and 65% of net sales for the other brands
• Boost the pharmaceutical roots of our der-mo-cosmetics by pursuing the international
development of Pierre Fabre Dermatologie with dermatologists
• Speed up our innovation and differentiation strategy, particularly through Sterile Cosmetics, biotechnological active ingredients and the ecodesign of products
• Continue to prioritize the pharmaceutical channel and dermatologist prescriptions, if need be by re-inventing the pharmacy advice model in countries without a strong pharmacist culture
• Intensify our international presence by opening new subsidiaries, as a priority in Asia, Latin America, Northern Europe and Eastern Europe
• Promote the "designed and manufactured in France" aspect, which presents a strong differ-entiation value on the global cosmetics market
in Europe
in Japan
in China
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Driven at a very early stage by the desire to have a presence outside of France, Pierre Fabre Laboratories initially turned to Southern Europe. A natural step for a company located in the Tarn, close to Spain. Incidentally, the Group opened its first subsidiary in Barcelona in 1970. This was followed by Portugal, Italy and Greece. Our dermo-cosmetics brands now have a prime position in these four countries.
Our international development follows the model that made the company a success in France.
Regardless of the country in which we are operating, the virtuous continuum principle – doctor, pharmacist, patient – prevails. This is necessary for pharmaceuticals, but also for dermo-cosmetics. It is, however, a model that we know how to adjust
to take into account the specific features of each market where distribution through pharmacies is more or less developed.
Being attentive to all cultures, creating relationships based on trust with local health care professionals, adapting to the reality of the distribution channels of each market without ever surrendering our requirement for professional advice provided in an environment that is consistent with the highly technical nature of our products: this is our approach for internationally building upon what we have constructed from our native land for over half a century.
ALGERIA • ARGENTINA • AUSTRALIA • AUSTRIA • BELGIUM • BRAZIL • BULGARIA • CANADA • CHILE •
CHINA • CZECH REPUBLIC • DENMARK • FINLAND • FRANCE • GERMANY • GREAT BRITAIN • GREECE •
HONG KONG • INDIA • ITALY • IVORY COAST • JAPAN • LEBANON • MADAGASCAR •
MEXICO • MOROCCO • POLAND • PORTUGAL • RUSSIA • SENEGAL • SINGAPORE • SLOVAKIA •
SOUTH AFRICA • SOUTH KOREA • SPAIN • SWEDEN • SWITZERLAND • TAIWAN • TUNISIA • TURKEY •
UNITED STATES • URUGUAY • VIETNAM
INTERNATIONAL FOOTPRINTTHROUGH SUBSIDIARIES AND OFFICES
IN 43 COUNTRIES ON ALL 5 CONTINENTS
1,032BILLION DOLLARSglobal pharmaceuticalmarket
17BILLION DOLLARSglobal dermo-cosmeticsmarket (5% of the global cosmetics market, estimated to be worth $342 billion)
INTERNATIONALThrough a network of subsidiaries in 43 countries, including all the major emerging markets, and distribution
agreements in over 130 countries, Pierre Fabre Laboratories generates 55% of its sales on foreign markets. The company
has nearly 3,700 employees outside of France.
TARGETEDGLOBAL EXPANSION
MARKETSThe global pharmaceutical market grew by 5% in 2014 and passed the symbolic $1 trillion mark, reaching $1.32 trillion at the end of the year.The expected growth rates for the global pharmaceutical market between 2015 and 2018 are estimated at between +5% and +6% per year, supported on the one hand by the launch of innovative products in mature countries and, on the other hand, by the two-figure growth rates in the Asia, Latin America and Africa regions. It is worth mentioning the significant growth of the US market in 2014, which reached +12%. This situation is in sharp contrast with what is currently happening in Europe, especially in France, where the retail pharmaceutical market saw a decrease in net sales (-2%) for the third year in a row.
The global cosmetics market reached $342 billion in 2014, up 5.4%. This market is experiencing growth in all regions of the world, including Western Europe and France. Its development forecasts between 2015 and 2018 are estimated at 6% to 7% per year, mainly due to strong projected growth in Asia, Latin America, Africa and the Middle East. China, No. 2 in the global cosmetics market after the USA, could take 1st place over the next 5 years.The dermo-cosmetics segment is estimated to be worth $17 billion, i.e. approximately 5% of the overall cosmetics market.
Pierre Fabre leads the dermo-cosmetics market in China.
The Group
PHARMACEUTICAL BRANCH
DERMO-COSMETICS BRANCH
55%OF ITS NET SALES ABROAD
OF ITS NET SALES ABROAD
OF ITS NET SALES ABROAD
49%
63%
generates
generates
generates
EUROPE
EUROPE
ASIA
ASIA
AMERICA
AMERICA
AFRICA/ MIDDLE-EAST
AFRICA/ MIDDLE-EAST
1
1
2
2
3
3
4
4
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WE HAVE CREATEDNUMEROUS PRODUCTS, GOOD PRODUCTS, DESIGNED WITH PASSIONAND CARE,WE HAVE DONEUSEFUL THINGSFOR HEALTH
MR. PIERRE FABRE JUNE 2005
OF HEALTH AND WELL-BEINGMEETING THE CHALLENGES
FROM HEALTHTO BEAUTY
MISSION l 38
INNOVATION l 40
INSPIRATION l 46
RIGOR l 48
ATTENTIVENESS l 50
PREVENTION l 52
AT THE HEART OF EAU THERMALE AVÈNE l 54
AT THE HEART OF ONCOLOGY l 56
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NOUVEAUTÉBaume après-shampooing
Avril 2015
Dattier du désert - Balanites aegyptiaca L.
Soins réparation soyeuseau dattier du désert
L’Institut Klorane soutient la «Grande Muraille Verte».
Partenaire de :
MISSION
Health is a unified whole. It is not just about being free of disease or disability. As the World Health Organization (WHO) says, it is a state of complete physical, social and mental well-
being. Pierre Fabre Laboratories took on the ambition to meet this need for well-being, with a constant concern for proven
efficacy and the highest level of safety, from pharmaceuticals to dermo-cosmetic care, from health to beauty. Men, women and
children, ill, recovering or in good health, from birth to their last days, Pierre Fabre products are for everyone.
TAKING CARE OF PEOPLE
We care for the human being as a whole.
In order to do this, we design and develop innovative solutions that contribute to
people's well-being, from health to beauty. We achieve this by cooperating with health
care professionals, our trusted partners worldwide, by drawing relentless inspiration
from nature and plants, and by placing pharmaceutical ethics at the very heart of
our operations.
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CENTRALNERVOUSSYSTEM
BIO-TECHNOLOGIES
DERMO-COSMETICS
DERMATOLOGICAL RX
Treatment for cancer-related pain Immunoconjugates
Skin cancer treatment
Development of supportive care for patients undergoing
chemotherapy treatment
Transfer of expertise in biotechnology
Sharing knowledge on skin functions
RESEARCHON PLANTSAND WATER
ONCOLOGY
THE BENEFITS OF CROSS-FERTILIZATION
17%OF NET SALES FROMPHARMACEUTICALS
207MILLION EUROS
4%OF NET SALES FROMDERMO-COSMETICS
INNOVATIONInvestments in R&D reflect the importance
that we attach to the discovery and development of innovative therapeutic and well-being solutions, from health to beauty.
Pierre Fabre combines pharmaceutical research and dermo-cosmetic research, thus creating novel links between these different fields. The Group makes use of cross-functional expertise, in particular,
research on plants, expert knowledge of active ingredients of natural or biological
origin, and research into dermatology.
IMAGINING FUTURE PRODUCTS
5 AREAS OF INNOVATION
Oncology: our cancer research concerns areas where medical needs are serious: solid tumors, in particular cancers of the breast, lung, colon, skin, aerodigestive tract, head and neck, or urogenital tract, as well as immuno-oncology oncohema-tology, in particular lymphoma, myeloma, and leukemia.
The central nervous system mobilizes our researchers around therapeutic solutions in the treatment of schizophrenia, bipolar disorders, neuro-degenerative diseases, depressive disorders and chronic pain.
Dermatological Rx is the point where our pharmaceutical and dermo-cosmetic R&D activities intersect. In the pharmaceutical field, our current focus is on infantile hemangioma and onco-dermatological illnesses.
Consumer Health Care within pharmaceutical R&D covers a broad spectrum, from new products to diagnosis aid tools for pharmacists, in the fields of family health care, oral care and natural health care.
Dermo-cosmetics: steeped in the Group's pharma-ceutical culture, our researchers identify potential active ingredients and new targets. They develop suitable knowledge and methods to better un-derstand the physiology of normal skin and skin suffering from a condition, to provide the most comprehensive cosmetology offering possible, from support for skin problems to care for the skin and scalp.
INVESTED IN R&D IN 2014
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From health...The first use of biotechnologies dates back to the 1970s, when an immunostimulant designed to prevent childhood upper respiratory infections entered the market. Building on the success of this product, Mr. Pierre Fabre decided to create an R&D center dedicated to immunology and biotechnology: the center was inaugurated in 1990 at Saint-Julien-en-Genevois (Haute-Savoie). Over the years, this center has earned a strong international reputation especially in the biotechnology of monoclonal antibodies. An additional Antibody Biotechnology Unit was built nearby and has been operating since 2011. Thanks to this unit, the Pierre Fabre Immunology Center benefits from a continuum between research, development and the production of clinical batches.
...to beautyBiotechnologies were first used in dermo-cosmetics in the 1990s, with Pierre Fabre developing active ingredients for anti-aging from a blue algae extract for the Galénic brand. A dedicated structure was then created around 10 years ago, bringing together the biotechnology unit of the Pierre Fabre Dermo-Cosmetics R&D Center in Toulouse, the mixed CNRS/Pierre Fabre Research Unit in Banyuls and the Water Laboratory at the Avène Hydrotherapy Center. Research from these 3 laboratories has led to the isolation and identification of the biological signature of Avène thermal spring water: Aqua Dolomiae, a unique microflora with surprising immunomodulatory and anti-inflammatory properties. An active ingredient extract, I-Modulia®, was incorporated in a range of Eau Thermale Avène products for the most sensitive, atopic skin types: XeraCalm A.D. At the same time, the Toulouse biotechnology unit has developed a high level of expertise in plant cell cultures, especially in the case of rare, endemic or endangered plant species. This technique has recently been applied to argan (the fruit of the argan tree originated from Morocco), whose native cells have been generated and grown in bioreactors. These manufactured cells possess powerful anti-aging properties and are the main active ingredient of the new Galénic “Cell Capital” range. Plant cell culture has the following advantages: production controls in bioreactors, reproducibility of results, low consumption of water, no or few organic solvents used in extraction, and no use of pesticides. Other research projects in the field of microalgae are underway to discover new active ingredients for dermo-cosmetics.
BiotechnologiesPARTNERSHIP CULTURE
Pierre Fabre R&D meets part of their innovation needs through scientific and technology partnerships:
Partnerships with public research institutions: numerous agreements and sharing of additional resources unite Pierre Fabre Laboratories with French Faculties and Universities, as well as with public research institutions (notably CNRS, INSERM and CEA).
Partnerships with private companies: for large-scale development projects, R&D turns to the large groups of the pharmaceutical industry that have the technological, human and financial capacities that are suitable for the size of these projects. The Group has also joined forces with innovative biotech companies.
Biotechnologies: research into biotechnologies (biotherapies based on monoclonal antibodies and recombinant proteins) also make up the cut-ting-edge expertise of Pierre Fabre research. The interest in monoclonal antibodies lies in their highly targeted mode of action, their efficacy and their greater tolerance in relation to chemotherapy treatments.
Immunoconjugates: at the crossroads of chemistry and biotechnologies, they are currently a booming class of pharmaceuticals for cancer treatment because they allow the active components to be delivered to the very core of a cancerous cell without affecting the healthy cells. Our research teams have complementary know-how for designing, producing and assessing such molecules, by combining the expertise of targeted biothera-pies developed in Saint-Julien-en-Genevois, that of cytotoxic agents studied at Toulouse-Oncopole and the chemistry know-how of the teams in Toulouse and Castres (Péraudel).
DIVERSIFIED SCIENTIFIC EXPERTISE
The development of a pharmaceutical drug is a long and complex process, which on average takes between 10 and 15 years, requiring 10,000 syn-thesized molecules to finally market one drug. Today, Pierre Fabre R&D focuses on 4 main areas of expertise.
Natural substances: plants and water are a major source of multidisciplinary scientific investigations aimed at developing original active ingredients used in the fields of pharmaceuticals, family health care and dermo-cosmetics.
New chemical entities: technological advances in molecular and cellular biology, structural biology, molecular modeling and medicinal chemistry help us to discover innovative therapeutic principles. These therapeutic principles are approved through the implementation of pharmacological models similar to clinical cases implemented during studies on patients, and are therefore highly predictive. Today, this expertise is an essential line of research, particularly in oncology and neuropsychiatry.
PHARMACEUTICAL INNOVATION
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Since the 1990s, Group researchers and engineers have been designing a unique system for the manufacture of sterile preservative-free skin care products, in the form of disposal single-doses, for the most demanding skin types. To make these sterile products accessible to as many people as possible and to promote compliance with treatments, a new research project has been put in place. This resulted in the launch of a new generation of skin care in 2009: Sterile Cosmetics.
Sterile cosmetics, which ensure absolute efficacy and safety for the most demanding types of skin (baby's skin, hypersensitive skin, diseased skin and, in particular, atopic skin) are currently the only cosmetics to guarantee:
• Preservative-free products containing only the absolutely essential active substances
• A unique manufacturing process developed by Pierre Fabre Laboratories: sterilizing formulas via infusion and packaging them in a sterile environment, according to current standards in the pharmaceutical industry
• Sterility of the product throughout its use thanks to DEFI (Device for Exclusive Formula Integrity), a patented packaging system. DEFI makes it possible to maintain the sterility of the product, even after the tube has been opened, with no risk of bacterial contamination throughout use
Marketed from 2009 under the Eau Thermale Avène brand (Tolérance Extrême range), Sterile Cosmetics are also available for the A-Derma and Ducray brands. It will be gradually extended to other Pierre Fabre Laboratories products designed for the most demanding types of skin.
Sterile Cosmetics
FIND OUT MORE www.cosmetique-sterile.com
INNOVATION IN DERMO-COSMETICS
To provide the most comprehensive offer in dermo-cosmetics, our researchers are
identifying new active ingredients of natural, biological or chemical origin and
exploring the cutaneous and capillary mechanisms on a tissue, cellular and
molecular scale. Supported by the pharmaceutical culture of the Group, they
give priority to 5 lines of research and 7 areas of scientific expertise.
5 LINES OF RESEARCHHydration: finding the best active ingredients to optimize skin metabolism (regulation of epidermal homeostasis, resistance to different stresses, cellular repair, etc.).
Skin reactivity: researching active ingredients that are capable of limiting non-specific skin reactions, particularly in inflammatory dermatoses (acne, atopic dermatitis, rosacea and seborrheic dermatitis).
Hyperpigmentation: proposing new active ingre-dients for the prevention of pigmentary disorders (melasma or lentigo).
Slimming: identifying pharmacological targets and active ingredients to increase the efficacy of slimming products. Our research focuses on chro-nobiology in particular.
Hair biology: researching and choosing active in-gredients and formulations that are best suited to the cellular and molecular mechanisms of the hair cycle.
Cellular and skin modeling: Pierre Fabre has a unit specializing in skin tissue engineering, which makes it possible to develop skin models from fibroblasts and keratinocytes. With a high predictive value for tolerance and efficacy of active ingredients, these models fall into a transversal assessment logic (from in vitro studies to clinical studies in humans).
Sensory analysis: under controlled laboratory or actual conditions of use, user panels help us measure the signals perceived by the five senses when using our products.
Dermatology hydrotherapy: the treatment of patients affected by atopic dermatitis or psoriasis at the Avène hydrotherapy center has clearly demonstrated the therapeutic benefits of water. To better understand its composition and mech-anisms of action, Pierre Fabre Laboratories has created the Water Laboratory.
5mainLINES OF RESEARCH
7AREAS OF EXPERTISE
7 AREAS OF SCIENTIFIC EXPERTISESterile Cosmetics: a unique solution that offers formulas containing only the essential active ingredients for the most sensitive skin types and 100% preservative-free. The guarantee of a safe and effective formula throughout the duration of use.
Formulations: emulsions, foams, lotions, sticks, powders, soaps, oils, etc. Our raw materials are selected to combine efficacy with comfort and to make our products a pleasure to use.
Marine active ingredients: in order to increase our access to original natural molecules, a mixed research team (Pierre Fabre, Pierre and Marie Curie University and CNRS [National Center for Scientific Research]), based in Banyuls-sur-Mer, is dedicated exclusively to the study of microbial marine ecology.
Clinical evaluation of efficacy: our Skin Research Center (in Toulouse) is working on understanding the mechanisms of the skin as well as measuring the efficacy and innocuousness of our dermo-cos-metic products.
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Rhealba® Oat, a unique active ingredient and exclusive to A-Derma, is emblematic of Botanical Expertise Pierre Fabre.
Rhealba® Oat grows in southwestern France, within a local sector and on our own land, in accordance with Organic Farming standards.
The Plantlets are the quintessence of Rhealba® Oat. These young shoots are brimming with active ingredients. It is after 12 weeks of growth that the maximum concentration in active ingredients, immuno-regulating saponins and anti-inflammatory flavonoids, is reached. These active ingredients have a concentration that is so fleeting that it is at this very precise moment that the crop must be harvested in just 3 or 4 days. A brief moment that guarantees the optimal value of the extracts later produced on our Gaillac site, less than 40 km as the crow flies from the oat fields. The extracts are then sent to Soual, 45 km from Gaillac, to manufacture the finished products.
Rhealba® Oat
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SHARING AND PROMOTING KNOWLEDGEAdditionally, our subsidiary in Madagascar decided to create a 163-hectare nature reserve on its own land to protect and list the species endemic to South Madagascar. This reserve, named Sakara (from the name of the river flowing through our land) was established in collaboration with the Madagascar Ministry of Water Resources and Forestry and was granted a status recognized by order of the Directorate General for the Environment and Forests of Antananarivo. The partial inventory of flora at the reserve revealed 146 species, including 20 species protected by international legislation. This transition forest (between dry forest and rainforest) is primarily dominated by the species Operculicarya decaryi, Grewia sp., Rhigozum madagascariense, Commiphora sp., Aloe divaricata and Hazunta modesta. Other observations are due to take place at different times to better record the existing biodiversity.
Our researchers are working on identifying molecules that are responsible for the activity of a plant, defining the extraction process guaranteeing a constant active-ingredient content and a method ensuring the reproducibility of this content in extracts produced on an industrial scale. In parallel, our agronomists are selecting the variety that is richest in active molecules, and defining the optimum cultivation and harvesting techniques.
www.aderma.com/en/
16,000PLANT SAMPLESthe largestprivate collection in the world
3 to 5NEW PLANT-BASEDEXTRACTSdeveloped every year
2 CENTURIESOF RECOGNITION FOR THE PROPERTIESof Avène thermal spring water
A source of inspiration, exploration and beauty, nature is at the heart of our
development model. Research into natural substances is a historic and original focus for our Laboratories. For over half a century, we
have been convinced that nature still holds undiscovered benefits for healing, soothing
and beautifying.
INSPIRATION EXPLORING THE BESTOF NATURE
EXPLORING MARINE BIODIVERSITYIn order to increase our access to original natural molecules (particularly in infectiology, oncology and dermatology) while preserving marine biodiversity, in 2001, we created a mixed research team at the Oceanological Observatory at Banyuls-sur-Mer (Laboratoire Arago) in conjunction with the Pierre and Marie Curie University (Paris VI) and CNRS [National Center for Scientific Research]. This team specializing in microbial ecology is studying marine micro-organisms, a renewable source of original biological active ingredients and is contributing to a better characterization of this biodiversity, which still remains almost unknown.
Its collection of microorganisms is registered at the World Federation for Culture Collections and includes over 2,000 species. To enrich this collection, the Oceanological Observatory takes part in oceanological campaigns on the different
seas of the world, such as the campaign organized by the explorer Jean-Louis Étienne on Clipperton Island deep in the Pacific.
DISCOVERING THE BENEFITS OF PLANTSConvinced that the 253,200 flowering plants listed to date, and those that remain to be discovered, may hold health and beauty benefits, we have made conducting research into plant-based substances a major focus of innovation. These scientific investigations are integrated into Botanical Expertise Pierre Fabre, a certified approach for the responsible development of innovative, safe and effective plant-based active ingredients. Numerous sciences and technologies are brought into play to identify plants that are to be researched, in particular phytochemistry, chemotaxonomy and epidemiology.
THE PROPERTIES OF AVÈNE THERMAL SPRING WATERAvène thermal spring water has been recognized for over two centuries for its soothing and anti-irritating properties. It is the essential active ingredient for a wide range of care products for the most sensitive, intolerant and allergic skin types. To deepen our knowledge of its composition and mechanisms of action, with the support of water experts, Pierre Fabre research teams are leading multi-disciplinary programs.
These have unlocked the secret of its unique mineral composition: an underground journey of over 50 years, which takes it to a depth of up to 1,500 meters, during which it takes in minerals and oligoelements. Recently, our researchers also brought to light the biological characteristics of the spring water.
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A COMPLETE RANGE OF SERVICES ON BEHALF OF THIRD PARTIESFor over 20 years, Pierre Fabre CDMO (Contract Development and Manufacturing Organization) has been providing a wide range of services and offering its international partners innovative solutions for their projects. Our CDMO model offers the highest level of quality at each stage of the process. Our industrial and technological know-how means we can propose a comprehensive or customized offer, from supplying components to delivering to customers, for pharmaceutical and cosmetic products, dietary supplements and medical devices. Our industrial teams are able to help development teams from the design stage. This collaboration, which takes place in the early stages of the product, makes it faster to register and launch new products.
THREE SPECIALIZED BUSINESS AREASInjectable products, for conventional cytotoxic agents and products from biotechnologyOur main business is manufacturing large batches of injectable products, at our site in Pau, which is globally recognized for its expertise. This production site is organized around 9 independent workshops, specialized in the aseptic filling of cytotoxic and biotechnological cancer drugs using isolators. These are inserted
into pre-filled syringes and bottles in the form of liquids and lyophilisates. Lozenges in a pharmaceutical environmentOur Aignan production unit offers a competitive service in the manufacture of lozenges and chewing gums used in consumer healthcare to treat sore throats, smoking cessation and for other nutraceutical applications. A very wide variety of products can be produced, taking the various formulations and technologies offered into account. Active ingredients, in particular natural active ingredients Based in Gaillac, our unit dedicated to active ingredients offers high-tech know-how in the areas of extraction, purification and synthesis. Another site in Bagnères-de-Bigorre is specialized in the manufacture of floral waters. Two other plants, one in Virrey del Pino (Argentina) and the other in Palézieux (Switzerland) have specific experience in animal extraction. These production sites operate in line with current best industrial practices.
Contract development and manufacturing organization (CDMO)
FIND OUT MORE
www.pierre-fabre.com/en/cdmo
ISO 9001FOR ALL OF OUR INDUSTRIAL SITES dedicated to dermo-cosmetics and Château-Renard
ISO 14001FOR ALL OF OUR SITESdedicated to chemistry
We have chosen to internalize the design and manufacture of most of our
products, from research to distribution, to guarantee quality by controlling the
entire logistics chain. Our industry applies innovative processes, based on a progress
initiative, which constantly raises the standards and the overall level of quality.
RIGOR MANUFACTURING IN COMPLIANCE WITH THE STRICTEST STANDARDS
Hard-boi led pharmaceut ica l lozenges: the production of hard-boiled lozenges for pharmaceutical products is the core business for the Aignan site (Gers). The site features continuous production technology that is unique in Europe.
Pharmaceuticals in dry, paste and liquid forms: constructed in 1963 by Rhône Poulenc, the Gien site (Loiret) was integrated with Pierre Fabre Laboratories in 1993. Today it is the Group's largest pharmaceutical production site. It manufactures and packages pharmaceutical and cosmetic products and medical devices in dry forms (such as capsules, tablets and sachets), or as pastes and liquids.
Paste forms and toothpastes: up until now the Château-Renard site (Loiret) was specialized in the production of pharmaceutical toothpastes. This expertise is currently being transferred to the neighboring site of Gien. Château-Renard will undergo gradual reconversion to become the growth driver required for the dermo-cosmetics activity.
Sterile Cosmetics and Dermo-Cosmetics: the Soual site (Tarn), supported by the neighboring workshop of Mazamet, manufactures and packages dermo-cosmetic products (creams, liquids, milks, lotions, soaps, sticks, etc.). The Avène industrial site (Hérault) manufactures and packages Eau Thermale Avène branded products from the spring water drawn nearby at the Sainte-Odile source. Further to the significant investments made between 2011 and 2013, the two plants are producing Sterile Cosmetic products in a sterile environment.
In 2014, the Avène production unit gained FDA approval to import OTC products to the USA. The Aréal site in Brazil, associated with the purchase of Darrow in 2006, will be converted into a dermo-cosmetic product manufacturing unit for the Brazilian market.
SPECIFIC KNOW-HOWActive ingredients: In its Gaillac (Tarn), Virrey del Pino (Argentina) and Palézieux (Switzerland) plants, Pierre Fabre produces active ingredients of plant, biological or synthetic origin for the pharmaceutical, cosmetic and nutraceutical sectors. The Group has cutting-edge industrial expertise in fields such as extraction, hemisynthesis, chemical synthesis, plant cell cultivation and supercritical fluids. Tests are meticulously performed at every stage in the development and manufacture of active ingredients.
Cytotoxics and production in aseptic conditions: specialized in aseptic filling using isolator technology to manufacture cytotoxic molecules, the Pau plant (Pyrénées-Atlantiques) was the first French pharmaceutical site to gain approval from the American Food and Drug Administration (FDA) in 1993.
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TRAINING AND INFORMATIONAll health care professionals, in particular doctors and pharmacists, are involved in our research and receive regular information on our specialities.
We provide them with training tools and information in order to support them in their task of diagnosis, advice and therapeutic education. The Foundation for Atopic Dermatitis, as well as Club dermaweb and Club pharmaweb, are two significant examples of this.
Club dermaweb and Club pharmaweb
Club dermaweb Dermatology website for doctorsClub dermaweb is a unique dermatology training and information website for doctors. It offers medical content written up by experts, approved by a scientific committee and updated weekly. Club dermaweb has been awarded numerous prizes and recommended by international scholarly societies. Available in five languages (French, English, Spanish, Portuguese and Chinese), it has over 20,700 registered members in over 150 countries, including approximately 73% dermatologists.
Club pharmaweb Dermatology website for pharmacistsClub pharmaweb supports pharmacists in giving dermatology advice. It offers comprehensive scientific content on dermatological conditions. The content is approved by a scientific committee and is regularly updated. The site offers free access for pharmacists and pharmaceutical personnel. It has almost 10,000 registered members in over 20 countries.
FIND OUT MORE FIND OUT MORE
www.clubdermaweb.com/front/en www.clubpharmaweb.com/front/en
Pierre Fabre Laboratories is committed to improving the treatment,
health and well-being of patients and consumers.
To carry out this mission, the Group forms partnerships based on trust all over the
world and at home with health care professionals who are in the best position
to prescribe or recommend the Group's products. They know their patients' needs
and can provide them with necessary information for the correct use of our
products better than anyone else.
ATTENTIVENESSPROVIDING SUPPORT, FROM PRESCRIPTION TO ADVICE
Of course, we apply this vision to pharmaceuticals but we also apply it to dermo-cosmetic products, which we feel, in certain cases, should be recommended by a dermatologist and systematically prescribed by qualified individuals or people trained to give suitable advice.
SUPPORT AT THE HEART OF THE MODELWhatever the extent of the disease or discomfort from which the patient or consumer is suffering, we consider it a health risk. Based on that principle, our vision is that everyone should benefit from advice and monitoring, where appropriate, by a health care professional: doctor, pharmacist, dental surgeon, midwife, podiatrist, nurse, etc. We believe that only health care professionals are in a position to identify the most suitable solution with patients for their pathology or needs.
Attentiveness, discussion, advice and provision of specific and suitable solutions
PATIENT
PRESCRIPTION BYA HEALTH CARE PROFESSIONAL(general practitioners or specialists)
ADVICE AT THE POINT OF SALE(pharmacists, pharmaceutical teams
or trained consultants)
DEVELOPING SOLUTIONSFROM HEALTH TO BEAUTY(Pierre Fabre)
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By encouraging regular physical activity for the most sedentary people, or those with chronic illnesses, Pierre Fabre is contributing to the efforts of the health care authorities in encouraging the medical prescription of sport and physical activities. Regular physical activity for the treatment of chronic illness is one of the HAS (French Health Authority) recommendations, which it indicates as a non-drug based treatment
Pierre Fabre Pharmaceuticals has invested in health care professionals to facilitate the prescription of physical activity via concrete actions such as:• Raising the awareness of health care professionals
during national conventions such as the Société Francophone du Diabète (French-speaking diabetes society) and European days for the Société Française de Cardiologie (French cardiology society)
• Creating follow-up forms to be given to patients by doctors, enabling patients to produce a daily report on their physical activity for 1 month. This simple tool enables doctors to discuss the issue with their patients and motivates patients to resume physical activity
In 2014, a partnership between Pierre Fabre Pharmaceuticals and the French “Sport pour tous” (Sport for all) Federation, bringing together over 3,000 sports associations, led to the creation of a list of sports clubs by region. This enabled doctors to send their patients to the clubs able to offer them physical activities based on their illness.
Sport for allThe comprehensive treatment of patients
also requires educational and preventive measures.
In order to do this, we are developing programs that support the work of health
care professionals. Our goal: to ensure that the health of patients suffering from severe or chronic pathologies is not worsened, and
to help healthy individuals stay in good health.
PREVENTION CONTRIBUTING TO PUBLIC HEALTH CHALLENGES
SMOKING CESSATION
Committed to smoking cessation for over 20 years, Pierre Fabre Health Care is involved in public health actions that target the general public and health care professionals.
• Taking part in the World No Tobacco Day, via awareness-raising operations on stopping smoking, led in both French hospitals and pharmacies, for patients, hospital staff and pharmacy personnel
• Supporting the association "Tabac et Liberté" [Tobacco and Freedom], which is dedicated to providing doctors with information and training on smoking prevention and cessation for patients
• Performing a STOP study over one year in pharmacies in South-West France, with the objective of assessing the effectiveness of individual interviews in pharmacies on stopping smoking
• Organizing conferences on the subject of "women smoking" to encourage interdisciplinary discussions on the dangers and general management of smoking amongst women
• Providing tools (tests, brochures, CO analyzers) to help health care professionals raise awareness on smoking cessation amongst the general public
PREVENTING SKIN CANCERThe Eau Thermale Avène brand is involved in numerous actions worldwide:
• Supporting the Day for Preventing and Screening Skin Cancers in France, Spain and Mexico
• In partnership with the European Skin Cancer Foundation, a foundation which aims to improve knowledge on skin cancers and to support research projects in this therapeutic field
• Creating websites dedicated to sun protection in Italy and Spain: www.benvenutosole.it and www.saludysol.es
• Production of a public-domain documentary, in Spain, on the public interest of sun protec-tion to prevent skin cancer "la Memoria a flor del piel" available on YouTube
• Educating children about sun protection, particularly in Turkey, using fun and educational materials
PREVENTION IN ORAL CAREBased on our unique experience in oral care, Pierre Fabre Oral Care is getting involved in awareness-raising and prevention actions. The objective is to raise awareness among the general public, and children in particular, on the rules of good oral hygiene and the importance of regular dental check-ups.
• Educational materials and tools are developed in France to help teachers and parents guide and encourage children to keep their teeth healthy
• Creation of the "Oral Care Coach" and "Oral Care Kids" apps on mobile phones in Switzerland
• Play written in Portugal and Bulgaria that is performed in schools and libraries to raise awareness about the importance of good oral care through a plot and characters
• Participation in the national program in Singapore to raise awareness on oral hygiene for children under the age of 7, providing toothbrushes and toothpastes to all children in nursery school
FOUNDATION FOR ATOPIC DERMATITISCreated in 2004, the Foundation for Atopic Dermatitis, a corporate
foundation created by Pierre Fabre Laboratories, has been helping to fund research work and clinical studies on atopic dermatitis. In addition, it develops and organizes educational initiatives and creates, produces and distributes information materials intended for practitioners, parents and children.
FIND OUT MORE www.fondation-dermatite-atopique.org/en
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FIND OUT MORE www.eau-thermale-avene.com
www.avenecenter.com/en
No.1ON THE DERMO-COSMETICS MARKETin Europe, Japan and China
103countries selling the product
150product references
2,734visitors in 2014
91million unitssold in 2014
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INSPIRATION
To care for the most sensitive and reactive of skin types, Avène Dermatological Laboratories takes thermal spring water from nature that is pure but rich in beneficial properties
• At the heart of the Haut-Languedoc Regional Nature Reserve, spring water forms in an environment that is monitored and perfectly preserved, over which we take a great deal of care
• In respect of its purity and scientifically-proven properties, the hydrotherapy center, Water Laboratory and production unit are brought together on the same site as its source.
• A naturally protected source: the Avène impluvium, covering approximately 30 km², consists of 80% forest with a low level of human activity
• Pure and regularly-monitored water: an in-depth sample, away from any potential surface damage. Over 2,300 test samples are carried out every year at the thermal spring water site.
A HEAVILY PROTECTEDRESOURCE
RIGOR
UNIQUE EXPERTISE FOR QUALITY HEALTH CARE
Numerous patented active ingredients
that have been discovered and developed by Pierre Fabre dermo-cosmetic research:
Parcerine®, Retinaldehyde®, diolenyl®, I-modulia®, etc.
A certified production unitISO 9001 and ISO 13485, which requires excellent
standards and traceability to ensure optimum safety and manufacturing quality.
A newway of thinking
about cosmetic treatments thanks to a unique concept: Sterile Cosmetics
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A certified hydrotherapy center• Aquacert HACCP Thermalisme®,
a guarantee of respect for all best practices for spas in terms of quality, health and safety
• The Avène hydrotherapy center is the only one of its kind in France to obtain "distinguished"
status and have its spa treatment recommended by the AFPRAL (French Association for the
Prevention of Allergies)
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AT THE HEART OFINNOVATION
XeraCalm A.D is a new generation of emollients providing a radically innovative solution to individuals suffering from itching due to dry skin.This innovation was the result of 12 years of multi-disciplinary research and development to unlock the mysteries of the thermal spring water in Avène.
XERACALM A.D, BORN OF THE BIOLOGICALCHARACTERISTICS OF AVÈNE THERMAL SPRING WATER
Aqua Dolomiae - Thanks to new investigation technology, in 2001, researchers at the Mixed Research Unit in Banyuls discovered the presence of microflora in Avène thermal spring water. This microflora, named Aqua Dolomiae, was then handed over to our researchers in microbiology and pharmacology. They would go on to show that Aqua Dolomiae holds numerous active molecules accounting for some of the anti-inflammatory and antipruritic properties of Avène thermal spring water. In collaboration with our biotherapy researchers, they developed tests that were used to select the most active molecular compound.I-Modulia - The fraction chosen was called I-Modulia® and became the first biotechnological dermo-cosmetic active ingredient deriving from Avène thermal spring water. This active ingredient is at the heart of the XeraCalm A.D range.
AT THE HEART OF
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INNOVATION
INSPIRATION
ENCOURAGING CLOSE COLLABORATION BETWEEN RESEARCHERS & CAREGIVERS
EXPLORING TROPICAL PERIWINKLE
Research in cancerology is a priority for Pierre Fabre with programs focusing particularly on targeted biotherapies. Our research teams in cancerology are located at the Saint-Julien-en-Genevois site (Pierre Fabre Immunology Center) and at the Oncopole campus in Toulouse (Pierre Fabre Research and Development Center). Since 2012, this campus, which is unmatched in Europe, has been a certified National Center of Excellence for cancer research by the French department of Health and Research. It brings together public
At the start of the 1980s, Pierre Fabre Laboratories began working on cancer research and formed a partnership with the CNRS to develop a cancer drug from tropical periwinkle: Navelbine®. As the first French cancer drug registered in the United States in pneumo-oncology, Navelbine® is one of the Group's major successes. Every year, more than 100,000 patients are treated with Navelbine®.Javlor®, a new generation cancer drug, is also the result of a cooperative effort with the CNRS on the therapeutic properties of tropical periwinkle.
Today our R&D teams are working to discover and develop natural molecules that are even more active and better tolerated.
and private researchers, hospital clinicians and patients on the same site and thus encourages the emergence of therapeutic solutions that are better suited to pathologies and patients. The shorter the links are between research laboratories, doctors and patients, the quicker patients will be able to benefit from the most recent and effective treatments.
RIGOR
Our two manufacturing plants for oncology products are certified by the American, European and Japanese pharmaceutical agencies (FDA, EMA and PMDA). They take charge of all of the manufacturing steps for Navelbine® (vinorelbine) and Javlor® (vinflunine). One is located in Gaillac (Tarn) for active ingredients, and the other in Pau (Pyrénées-Atlantiques) for formulation and packaging.
Having been present in oncology for 25 years, Pierre Fabre Laboratories has made major advances in this therapeutic field:
Discovering and marketing cancer treatments using plant-based active ingredients
Developing oral chemotherapy, which improves the comfort of the treatment for both patients and caregivers
Treating diseases for which there were virtually no solutions, such as non-small cell lung cancer at the adjuvant stage or second-line treatment for bladder cancer
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IMMUNOLOGY CENTER(SAINT-JULIEN-EN-GENEVOIS)
RESEARCH AND DEVELOPMENTCENTER (TOULOUSE)
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SATISFYING THE STRICTEST REGULATORYREQUIREMENTS
PIERRE FABREONCOLOGY NETWORK
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PRODUCTION UNIT FOR ACTIVE INGREDIENTS (GAILLAC)
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PRODUCTION UNIT FOR INJECTABLES AND CYTOTOXICS (PAU)
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MR. PIERRE FABRE
THE SAME ADVENTUREWHICH ALLOWS US TO SHARE STRONG VALUES
DECEMBER 2009
RESPONSIBILITYAND CITIZENSHIP
PEOPLE l 60
REGIONS l 62
AT THE HEART OF MADAGASCAR l 64
NATURE l 66
ENVIRONMENT l 68
AT THE HEART OF THE CIRCULAR ECONOMY l 70
AT THE HEART OF BOTANICAL EXPERTISE PIERRE FABRE l 72
BEING CURIOUS ABOUTTHE WORLD AROUND US
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OFFERING A SAFE AND SOUND WORKING ENVIRONMENTOur company's mission, "caring for the human being as a whole", makes the health and safety of our employees our highest concern.
In order to do this, we take measures to reduce and prevent risks, especially chemical, mechanical and psychosocial risks linked to noise, the ergonomics of workstations and road risks.
We also ensure that adequate safety measures have been put in place for employees traveling abroad.
Values at the heart of corporate culture
The Pierre Fabre culture is built on 9 strong values shared by all members of the company. These values, directly inherited from the humanist and entrepreneurial spirit of our founder, shine through on a daily basis in our collective practices and our individual actions.
We promote these values among new employees and in all regions where the company operates, particularly through the training program “Culture & Avenir” [Culture & Future]. Combined with our business model, our values make work meaningful, and make Pierre Fabre Laboratories an employer of choice.
COHESION
PHARMACEUTICAL PRECISION
INDEPENDENCE
A HUMANIST APPROACH
INNOVATION
ENVIRONMENTAL FRIENDLINESS
ATTENTIVENESS IN THE FIELD
ENTHUSIASTIC ENTREPRENEURSHIP
PERFORMANCE RECOGNITION
FIND OUT MORE
www.rh.pierre-fabre.com/en
OSHAS 18001 CERTIFIED SITESWe have chosen to obtain certification according to the OHSAS 18001 standard for our 2 main production sites for active ingre-dients, in Gaillac (Tarn) and in Virrey del Pino in Argentina, as well as at our Skin Research Center at Hôtel Dieu (Toulouse), where we carry out clinical studies.
This occupational health and safety management system helps to ensure a structured approach, focused on the principle of continuous improvement, and demonstrates our commitment to sites presenting significant potential risks or risks concerning voluntary participants in our clinical studies.
Our Human Resources policy is rooted in the unfailing drive of Mr. Pierre Fabre to
combine the company's economic project with a social one. This policy supports the
business as it evolves, and its international development in particular, and allows
employees, our company's most valuable asset, to grow.
CREATING DEVELOPMENT OPPORTUNITIES FOR OUR EMPLOYEESThe pharmaceutical and cosmetics industry is experiencing increasingly rapid economic, regulatory and technological changes that affect our organization and activities.
Jobs and skills planning system: to support these changes and because we are convinced that our employees are the driving force behind our per-formance, a new jobs and skills planning system agreement was signed with social partners in France in 2013. Its objectives are to support job changes and their content, taking into account those which are to be created, changed or eliminated; to adapt and strengthen employee skills, particularly through training; to promote internal mobility through specific measures and to support employees in their career development process.
This dynamic approach has also been implemented abroad, through management of staffing and skills requirements in our subsidiaries, and anticipation of economic and regulatory conditions by area.
Training: in order to help employees enhance their command of their position and to develop skills
Pierre Fabre International Marketing School: in partnership with the Toulouse Business School, this program, leading to a diploma, is designed to train Product Managers with high international potential. These young graduates then join the company, often through positions under the Volunteer for International Experience program. We have also opened up this excellence in marketing course to talent coming from our international subsidiaries to help their integration and quick immersion into the culture and methods of the Group.
Remuneration and "Benefits & Compensation" policy: to support international development, we make sure that we are familiar with the local employment markets and that we put in place a competitive pay policy that is suited to the different types of mobility and the constraints of the countries in which we operate.
7.3%OF THE COMPANY'S SHARE CAPITALis held by employees
6.5% OF WORKERS WITHDISABILITIESin France
91%OF EMPLOYEES ARE SHAREHOLDERSin the 7 countries concerned by the plan
PEOPLE PROVIDING MEANINGTO WORK
that are essential for the future, the company has its own corporate university, in addition to a range of training options available. This university received over 1,000 Group employees in 2013.
SUPPORTING INTERNATIONAL DEVELOPMENTTo support our international development challenges, we have reorganized our HR teams both at the head office and locally, creating dedicated teams in our main subsidiaries: there are currently 16 "country" human resources managers. This HR segmentation has been built and driven around a common mission: to establish and sustain the Pierre Fabre model in each country where we are developing, in line with specific local conditions, and to identify and lead a pool of international talent.
International partnerships with the education system: the Group has always worked very closely with the education system. We are now extending this long-standing commitment from France to our new territories, on the one hand by establishing partnerships with locally recognized players in education, and on the other hand by reaching out to our partners, French universities and schools located abroad.
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ETHICAL SHEA BUTTER FROM BURKINA FASO - RENÉ FURTERER Founded in 2004, SOTOKACC, a small business based in Toussiana (Burkina Faso), through which our René Furterer brand obtains its shea butter, provides not only regular income and social autonomy for its 16 female employees, but also for over 200 women who produce and harvest the nuts.Our supply contract with this small business is set for 5 years, with a pre-financed 100% Shea butter order.In July 2011, the René Furterer brand provided SOTOKACC with a mechanical press, which now makes the tedious job of churning unneces-sary and therefore reduces the difficulty of the women's working conditions. This supplier is fair trade-certified.
THE DESERT DATE PALM IN SENEGAL - KLORANEThe Boabab des saveurs company in Thiès, Senegal provides us with dates from the desert date palm. In order to harvest the dates, this company works with two Economic Interest Groups (EIGs) in the Mboumba and Galoya regions of northern Senegal. These two EIGs include around 100 women who pick the dates over a farmed area of almost 100 hectares, which is certified organic. Since 2014, all of this supply affiliate has been certified "fair trade". As we purchase these dates, we help to fund a development program whose use will be defined in association with the two EIGs from 2015.
THE ARGAN TREE IN MOROCCO - GALÉNICWe obtain our supply of argan oil used by the Galénic brand in its range of Argane products from women's cooperatives. The union for these cooperatives, the Argan Women's Cooperative Union (UCFA), was founded in 2001 and includes 22 cooperatives, 13 of which employ over 1,000 women. Since 2014, our supply partner for argan oil has been fair trade-certified. Furthermore, the Galénic brand supports the Mohammed VI Foundation for Research and Protection of the Argan Tree. The brand therefore contributes to replanting argan trees, developing and protecting the natural balance, improving the quality of life of local populations, and developing scientific research into the Argan tree.
OUR FAIR TRADE SECTOR
1stEMPLOYER IN THE TARN
1 of the 5LEADING PRIVATE SECTOR EMPLOYERSin the Midi-Pyrénées region
195MILLION EUROS INVESTEDin greater southwestern France between 2013 and 2015
70%OF OUR PURCHASEScome from French companies
It is a shared story, a story of places and people, but also a way of claiming our
identity and taking pride in our differences: Pierre Fabre Laboratories has always shown willingness to share our developments with the regions in which we operate and, more
specifically, our native land.
Sponsorship: we support several foundations (“Dépêche du Midi” [regional newspaper], “Cordées de la réussite” [Roped together for success], “Un avenir ensemble” [A future together]). These three organizations mainly support sponsorship projects to support young people from modest backgrounds in their educational and professional careers.
CULTURE AND HERITAGESupporting several museums (the Goya Museum, the Toulouse-Lautrec Museum and the Dom Robert Museum) and the Abbey School of Sorèze (educa-tional and cultural space, where Pierre Fabre has set up the Pierre Fabre University).
SPORTWe support various athletic associations in the Tarn and we are the main partners of Castres Olympique.
TARN & MIDI-PYRÉNÉES, OUR NATIVE LANDSOur company wishes to contribute to impacting the regions where we operate and share its development with the local communities. We support various projects, particularly in the Midi-Pyrénées region.
ECONOMYTarn Entreprendre: association for helping new companies, created in 1997 at the initiative of Mr. Pierre Fabre.Installation of a high-speed network for southern Tarn: the Group is the founding shareholder of the mixed economy company, Intermédiasud.Cancer-Bio-Health competitiveness cluster in ToulouseSupporting the Tarn economy by encouraging our suppliers and partners to operate in our home region.
EDUCATIONPartnerships with the education system: Regional schools and universities to develop training programs, contribute to land-use planning and encourage the professional integration of young people.
REGIONSCONTRIBUTING TO THE ECONOMIC AND SOCIAL DEVELOPMENT OF OUR REGIONS
FIND OUT MORE www.pierre-fabre.com/en/education
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We are helping fight against mal-nutrition affecting children in Madagascar, by paying 5% of our sales from the Centella Asiatica leaf to the National Office for Nutrition, so they can develop social projects. In addition, the Pierre Fabre Foundation contrib-uted to renovating the Ranopiso maternity based on a proposal from our subsidiary.
Our 200 hectares of farmland and the Ranopiso Arboretum have Ecocert organic farming certification*. We also decided to create a 163-hectare nature reserve on our land to protect and list the species endemic to South Madagascar.
Its contribution to the national reforestation operation, "one child = one tree planted" as well as the employees planting 15,000 trees to make up for the carbon footprint generated by manufacturing our cancer drugs (made using tropical periwinkle, mainly grown in Madagascar), earned the subsidiary the Ecocert* "Reforestation and Solidarity" label.
Innovation & Health/BeautyKnowledge& Nature Conservation
Ecodesign& Industrial Footprint
2 4
5An independent firm, Utopies, assessed the socio-economic impact of our subsidiary. The results show a significant effect on local employment with over 1,000 jobs supported. One job created by our subsidiary generates 27 additional jobs on the island.
People & Regions
3
AT THE HEART OFActions taken by our subsidiary in Madagascar for over 40 years demonstrate the Group's overall approach to social responsibility.
Looking back on actions taken via the 5 pillars of our CSR approach.
Our subsidiary was labeled a "responsible company" according to Ecocert's ESR (Fairness, Solidarity and Responsibility) standard*.
MADAGASCAR
Governance & Ethics
1
*Ecocert: Independent inspection and certification organization
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The Klorane Institute
FIND OUT MORE www.institut-klorane.co.uk
For over 20 years, the Klorane Institute has been unwaveringly passing on its botanical passion, based on 3 missions:
• Protecting endangered plant species, mainly through various partnerships (Botanical Conservatories and Gardens, IUCN, etc.). The Klorane Institute notably supports the Great Green Wall project, which aims to slow down desertification in the Sahel by planting desert date trees (60,000 planted in Senegal over 6 years). This action was recognized by UNESCO within the program as a prime example of raising awareness on sustainable development.
• Exploring botanical treasures around the world to better understand and protect them. The Klorane Institute is undertaking an ambitious conservation project for endangered species endemic to Argentina in partnership with the Carlos Thays Botanical Garden in Buenos Aires and BGCI (Botanic Gardens Conservation International)
• Sharing botanical knowledge with as many people as possible, especially children. The educational program "Graine de Botaniste" (budding botanist) raises awareness among pupils and teachers, with free, fun, innovative materials: mobile app "Herbier digital" (digital herbarium), seed packets, plant collection guide, etc.)
CORPORATE FOUNDATION FOR THE PROTECTION AND PROMOTION OF OUR NATURAL PLANT HERITAGE
350PROTECTED SPECIESat the Ranopiso Arboretumin Madagascar
1,000VISITORS AND HEALTH CARE PROFESSIONALSwelcomed each year at the Water Laboratory
NATURE
SHARING KNOWLEDGEIn order to preserve and use nature's treasures sustainably, it is first of all crucial to have good knowledge of them. Pierre Fabre Laboratories is convinced of this, so our researchers and experts are behind various initiatives for developing and sharing knowledge about plants and spring waters, particularly through exchanges with expert scientific institutions and local associations.
WORKING HERE AND ABROAD
IN MOROCCOSince 2004, through our Galénic brand, Pierre Fabre Laboratories has supported the Mohammed VI Foundation for researching and safeguarding the Argan tree, particularly for its role in the conserva-tion of Argan tree forest ecosystems in the regions of Essaouira, Tiznit and Taroudant, recognized as World Heritage of Humanity sites by UNESCO.
IN FRANCEIn Soual (Tarn), Pierre Fabre Laboratories created a Botanical Conservatory, a place of research, protection and conservation. Nearly 1,200 plant species are represented, of which 40% are protected. In 2010, it became the 4th largest French scientific institution and the 1st private French organization to obtain approval from CITES*. In 2012, its herbarium received international recognition from the New York Botanical Garden.Another Group creation lies at the foot of the Cévennes: the Water Laboratory, created to protect and better understand the therapeutic value of Avène thermal spring water. This experimentation site shares its knowledge and discoveries on Avène water and its soothing, anti-irritation and healing properties, and more widely on water, particularly through communications intended for scientists and the general public.
Because biodiversity plays a crucial role in maintaining natural balances and provides
many services to humanity, particularly in the fields of health and beauty,
its preservation is a major concern for our Group.
PRESERVING BIODIVERSITY AND SHARING OUR KNOWLEDGE
IN CAMBODIAThe product of the Joint Laboratory of the Phytochemistry team at the Phnom Penh Faculty of Pharmacy (University of Health Sciences, Cambodia), the collective work on Cambodian flora – 2,000 photographs, 524 species represented – for the first time allows botanists, tourists and plant-world enthusiasts to learn about the unknown treasures of Cambodian flora and to find out how they are used locally. Through its vastness and the impeccable care taken by our experts to identify the plants in partnership with specialists from the finest herbariums in the world, this exceptional inventory makes the "Flore Photographique du Cambodge" a masterpiece.
*Convention on International Trade in Endangered Species of Wild Fauna and Flora66 67
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Throughout the life cycle of Pierre Fabre products, from the purchase of raw materials and production to being placed on the market and their use, the Group ensures that our actions fit in with respect for our suppliers and reduce our impact on the environment.
To do so, the Group conducts ecodesign projects aiming to reduce the environmental footprint of our products compared to previous products or other offers on the market.
5 WORKING AREAS HAVE BEEN IDENTIFIED:
• Biodegradability of rinse-off products
• Reduction of ingredients or "strict minimum" rule
• Naturalness
• Reduction in the environmental footprint from product manufacturing
• Reduction in the weight of our packaging and increased use of recycled materials
ECODESIGN IN PRACTICE
Ducray Extra Doux shampooSince 2009, the Ducray brand has been taking a proactive approach to ecodesign for its leading product "Extra Doux" (Extra Gentle) shampoo.
• RESEARCH AND QUANTIFICATION of the environmental impacts from extracting raw materials to eliminating products at the end of their life cycle and identifying areas for improvement
• DEVELOPMENT OF A BIODEGRADABLE FORMULA* with ingredients that allow for natural decomposition, without compromising on efficacy or pleasure to use
• MODIFICATION OF THE PACKAGING to make it recyclable**
• PARTICIPATION IN THE ACACIA PLANTING PROJECT IN MALI in partnership with Zanbal, thus offsetting 100% of the greenhouse gas emissions associated with its production. An acacia captures 360 tons of CO2 over 20 years, so the number of trees planted will capture the amount of CO2 corresponding to the amount released when manufacturing the shampoo. In addition, these acacias will limit erosion and desertification, providing feed for ruminants (pods) and natural fertilizers for the soil (dead leaves), and will provide income for the farmers managing them.
All of this has made the EXTRA DOUX shampoo a candidate for obtaining environmentally-friendly labeling with the following results:
* according to the OECD 301 B international standards.** "Sort your waste for recycling! Put your bottle in the recycling bin (making sure you discard the pump)! "
These scales were produced further to comparative studies of different formulasand different shampoos* Affected Ecosystems
For 1 hair wash lavage
Greenhousegas emissions
Waterconsumption
Aquaticecotoxicity
LOW HIGH
.
.
.
équiv.
AE*
ENVIRONMENTAL MANAGEMENTOur environmental strategy rests on two issues: saving resources and limiting discharges (water, air, waste) from design to the end of the product's life cycle. This strategy is integrated into a global management system dedicated to health, safety and the environment. To determine suitable environmental action plans, we use assessment tools such as carbon analysis, analysis of product life cycles and energy diagnostics.
Aware of our environmental footprintrelated to our economic and industrial
activity, the company has taken measures, throughout the entire logistics chain,
from purchasing raw materials to distributing products, to reduce pollution
and preserve resources.
20,000 m2OF INDUSTRIAL BUILDINGSintegrated into theHigh Environmental Quality® experiment
200HECTARES CULTIVATED IN THE TARN in accordance with organic farming standards, certified High Environmental Value
12GREEN CHEMISTRY PRINCIPLESsystematically applied when developing new processes at the Gaillac plant
ENVIRONMENTCONTROLLING THE IMPACT OF OUR ACTIVITIES
HIGH ENVIRONMENTAL QUALITY®The "High Environmental Quality®" (HQE®) approach is based on reducing a building's impact on the environment and optimizing the living environment for the comfort and health of users. An operations management system (quality system) and 14 targets are therefore used to determine the Environmental Quality of a building (e.g.: energy management, acoustic comfort, etc.).The company is performing experimental HQE® operations for its three latest industrial investments: extension of the dermo-cosmetics plant in Soual (Tarn), extension of the Avène plant (Hérault) and construction of the antibody biotechnology unit in Saint-Julien-en-Genevois (Haute-Savoie).
FIND OUT MORE www.pierre-fabre.com/en/sustainable-development
ISO 14001 CERTIFICATION PROCESSThe ISO 14001 certification process is an environmental management system. It is being rolled out at the active ingredient production sites in Gaillac (Tarn), Palézieux (Switzerland) and Virrey del Pino (Argentina) as well as at the pharmaceutical production site in Pau (Pyrénées-Atlantiques). It is used to guarantee a structured approach, based on the principle of continuous improvement.To date, 100% of our chemical activities are covered, as well as one pharmaceutical manufacturing site out of the 5 sites belonging to the Group in France. Our ambition is to develop this certification at the Group's largest industrial sites.
Bio
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EXTRACTION PLANTIN GAILLAC
BIOMASSBOILERIN SOUAL
ashes
PRODUCTION PLANTIN SOUAL
RECYCLING PLANT
TARN SAWMILLWood waste
PLANTS
internal recycling of solvents
external recycling of degraded solvents in other chemical activities
hot water& heat Recycled plastics
PLANT RESIDUE EXTRACTS
FLAX RANGEKLORANE
The biomass boiler project, launched in 2010 at the initiative of Mr. Pierre Fabre, is a fine example of a circular economy and the promotion of short supply chains.
THE CIRCULAR ECONOMY
FLAX
OAT
CALENDULACORNFLOWER
FLAX CROPROTATION
SOILAMENDMENTS
The Pierre Fabre Dermo-Cosmetics plant in Soual (Tarn) is now equipped with a biomass boiler, destined to annually recycle 1,000 tons of plant residue from the extraction of two medicinal plants - tropical periwinkle and dwarf palm from Florida - and Rhealba® Oat, used by the A-Derma dermo- cosmetics brand. This residue is produced in Gaillac (Tarn) around 50 km from Soual, by the Pierre Fabre Pharmaceuticals plant, which specializes in the extraction of natural pharmaceutical and dermo- cosmetic active ingredients from plants. The residue, combined with woodchips, waste from the Tarn forestry industry, is used to supply the biomass boiler (which was made in France). Ultimately, the boiler will enable 60% of the plant's total natural gas consumption to be replaced by renewable energies and reduce its carbon footprint by 1,600 tons of CO2 (i.e. 5% of the site's annual carbon footprint). In 2016, ashes from the combustion of plant residue will be spread on the fields of Rhealba® Oat, which are also located in the Tarn and farmed in accordance with organic farming principles.
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AT THE HEART OF
Guarantee
72
THE FOUR FOUNDING PRINCIPLES OF THE APPROACH
Proven effectiveness of our plant-based active ingredients. High standards of quality resulting from our pharmaceutical culture.
Sustainable preservation of botanical heritage and biodiversity, both sources of benefits – whether known or yet to be discovered – for everyone's health and beauty.
Cutting-edge research on plants, bringing together the complementary expertise of botanists, agronomists, biologists and pharmacists who are passionate about the benefits of the plant world.
A respectful approach to our partners, farmers, growers and suppliers, whose know-how contributes to the development of our botanical expertise.
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Rhealba® Oat>>> A-Derma
Tropical periwinkle >>> Navelbine® and Javlor®
Serenoa repens >>> Permixon
Flax >>> Klorane hair care range
Shea >>> René Furterer hair care range
Ruscus >>> Cyclo 3 - Naturactive
Moringa >>> Galénic care product range
A CERTIFIED APPROACH FOR THE RESPONSIBLE DEVELOPMENT OF INNOVATIVE, SAFE AND EFFECTIVE PLANT-BASED INGREDIENTS
Botanical Expertise Pierre Fabre is the name given to our approach to the responsible development of plant-based active ingredients, from research on plants – and their active ingredients – to the production of active ingredients, their use in the formulas of our products and their cultivation. This development is part of a virtuous circle aiming to develop innovation, preserve biodiversity, guarantee the efficacy and quality of our plant-based active ingredients and respect our partners throughout the entire chain. Since 2010, the approach has been recognized by the European label EFQM* awarded in France by the AFNOR group. A label combining Quality and Sustainable Development.*European Foundation for Quality Management
Of the 410 plant extracts used by Pierre Fabre Laboratories, almost 250 are included in the Botanical Expertise Pierre Fabre approach, including those used to develop the Group's emblematic products and brands: Navelbine® and Javlor® (cancer drugs), Permixon® (urology), A-Derma, Galénic, Klorane (dermo-cosmetics) and Naturactive (natural health care).
The Botanical Expertise Pierre Fabre approach is based on four founding principles: innovate, preserve, guarantee and respect. These principles give structure to the development of our plant-based active ingredients.
A primary source of inspiration for Pierre Fabre Laboratories, the plant
world is an endless but delicate source of creativity. Wanting to play their
part in contributing to the challenges related to biodiversity loss while meeting the goals of innovation,
safeguarding supplies and the quality of active plant ingredients,
Pierre Fabre Laboratories has developed a responsible cross-
functional approach across the Group called Botanical Expertise Pierre Fabre,
which is EFQM* certified.
AT THE HEART OF
PLANTS AT THE HEART OF VARIOUS GROUP PRODUCTS
Preserve
RespectInnovate
EVENTS
2014 2015
Our passion for nature, our botanical expertise and our actions to promotebiodiversity were showcased throughout the year
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PIERRE FABRE DERMATOLOGIERECEIVES THE PRIX GALIEN AWARD
Pierre Fabre Dermatologie received the Prix Galien award for pharmaceutical research. This award recognizes successful public-private partnerships. It honors the capacity for joint innovation between the University of Bordeaux and our Group.
KLORANE BÉBÉ, COMMITS TO HELPING AMREF
Klorane Bébé supports the AMREF* "Stand Up for African Mothers" campaign, the No. 1 African public health NGO, and is helping to train 15,000 African midwives to reduce maternal and infant mortality in Africa.* American Medical and Research Foundation
PIERRE FABRE PHARMACEUTICALS OBTAINS MARKETING AUTHORIZATION IN CHINA FOR NAVELBINE® ORAL (VINORELBINE)Pierre Fabre Pharmaceuticals announces obtaining marketing authorization in China, issued by the CFDA (Chinese Food and Drug Administration) for NAVELBINE® Oral.
SEPTEMBER 24, 2014SEPTEMBER 22, 2014
DECEMBER 5, 2014
THE KLORANE INSTITUTE: 20 YEARS OF COMMITMENTAND BOTANICAL PASSION
For its 20-year anniversary, the Klorane Institute brought together 450 French children and their families, via fun, educational workshops, to raise awareness on the impor-tance of plants and their uses. The aim of these workshops was to focus on botanical passion with respect to social concerns and raise awareness among the youngest in our society on the benefits of the plant world.
JUNE 6, 2014
ONCO-DERMATOLOGY: COLLABORATION BETWEEN REDX PHARMA AND PIERRE FABRE
Redx Pharma and Pierre Fabre Laboratories finalized collaboration plans and an option agreement in the field of cancer research. This exclusive agreement will enable RedX and the Institut de Recherche Pierre Fabre (IRPF) to work together on assessing and developing a small molecule program in oncology.
FEBRUARY 27, 2014
FEBRUARY 3, 2014
PIERRE FABRE INVOLVED IN THE CREATION OF A GREEN CHEMISTRY CLUSTER IN MIDI-PYRÉNÉES
The Midi-Pyrénées chemical industry union official-ly launched its green chemistry cluster, which creates networks between companies and research laboratories. Pierre Fabre Laboratories, as a co-founding industrial member of the cluster, is taking various measures to comply with one or more green chemistry principles, in particular for the active ingredient production unit in Gaillac.
PAU: MANUFACTURING FOR ROCHEThe manufacturing site for injectables in Pau has signed an important manufacturing contract for Cellcept with the Swiss laboratory Roche.
FEBRUARY 4, 2014
LOOKING BACK AT THE
EVENTS
Andr
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© Ya
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i-Min
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DAGP
, Par
is, 2
014
One year after the passing of our founder, Pierre Fabre Laboratories and our
10,000 employees pay tribute
Pierre Fabre, founder and CEO of the Laboratories that bear his name, passed away on July 20, 2013. On the 1st anniversary of his death, tribute was paid: by the Group's employees, by Castres, his hometown, and by artists such as the Franco-Chinese painter Yan Pei-Ming.
HIGHLIGHTS OF 2014AND THE 1ST HALF OF 2015
JULY 18, 2014
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In May 2014, A-Derma announced the signing of the "Carbone local®" scheme, focused on the planting of hedgerows around the Terre d’Avoine site (Puylaurens). The scheme was presented to the French Senate in October and the hedgerows planted on December 2. The equivalent of 120 tons of CO2 will be offset progressively, representing the annual emissions associat-ed with the manufacturing and marketing of the Exomega range in France.
The organic farming of Rhealba® Oat, the 100% regional production ecosystem and now participation in the Carbone Local® program, demonstrate the strong com-mitment that the A-Derma brand has and, broadly speaking, the Group has to their CSR approach.
For more information, visit www.carbonelocal.com
TA K ES AC T I O NTHREE ECOCERT LABELS FOR OUR SUBSIDIARY IN MADAGASCAR
As part of application of the Group's CSR policy, our subsidiary in Madagascar has followed a voluntary assessment process by Ecocert and obtained labels in three areas: organic farming, reforestation and solidarity, and responsible company (ESR). Our subsidiary in Madagascar, SEAR (the Ranopiso Farming Company) is in charge of growing and supplying medicinal plants. It provides the periwinkle leaves used to manufacture our anti-cancer drugs Navelbine and Javlor. These three labels illustrate how our Madagascar subsidiary meets its social and en-vironmental commitments, fully integrating our Botanical Expertise Pierre Fabre approach.
DECEMBER 2, 2014 NOVEMBER 25, 2014
PIERRE FABRE FOUNDATION SETS UP IN EN DOYSE
The new administrative headquarters of the Pierre Fabre Foundation at the En Doyse site (Lavaur, Tarn) is a con-ference center, where we aim to foster dialog between the various stakeholders working toward health care development in less privileged countries. En Doyse was the family residence of Mr. Pierre Fabre, which he left to the Pierre Fabre Foundation.
AN ACADEMIC WORK ON THE GROUP'S HISTORYÉditions Privat published the book "History of Pierre Fabre Laboratories", written by Hervé Penan, Professor of Management at the Toulouse-Capitole University. With the sub-heading "Innovating, from Health to Beauty", this academic work recounts six decades of events that led to the creation of the Pierre Fabre Group.
PIERRE FABRE PHARMACEUTICALS SUPPORTS THE "SPORTS CLUB HEALTH WELLNESS" CHARTER
The French Federation Sports for All has launched, in partnership with Pierre Fabre Pharmaceuticals, the first "Sports Club Health Wellness" charter, to encourage the regular participation in physical activity for the most sedentary or chronically ill people.
REGISTRATION OF HEMANGIOL® IN EUROPE AND THE USAIn March 2014, Pierre Fabre Dermatologie received approval from the Food and Drug Administration to place the pediatric drug HemangeolTM on the American market, for the treatment of infantile hemangioma. In May 2014, the European Medicines Agency authorized putting the same product on the market, for the same indication, under the commercial name Hemangiol®.
Donnerà leur peauun plusbel avenirForts de leur expertise reconnue en dermatologie,
les Laboratoires Pierre Fabre Dermatologie
développent actuellement un médicament
par voie orale dans l’Hémangiome Infantile
nécessitant un traitement systémique.
A terme, nous souhaitons offrir
toute une gamme de formes galéniques
systémiques et topiques, adaptées
à cette pathologie dermatologique qui touche
aujourd’hui un nouveau né sur 10
et qui peut altérer de manière durable
le visage ou le corps de nos enfants.
Parce que la peau d’un enfant
est un bien précieux, nous entendons
lui apporter dans les années à venir
le meilleur de notre recherche.
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OCTOBER 13, 2014
OCTOBER 31, 2014
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MARCH 2015
MARCH 12, 2015
PIERRE FABRE DERMO-COSMETICS BRINGS TOGETHER800 EUROPEAN DERMATOLOGISTS
An undisputed name in global dermatol-ogy, Pierre Fabre D e r m o - C o s m e t i c s created a buzz in Paris with its first Pierre Fabre Dermatology Forum on April 23-24. 800 international der-
matologists attended, due to the appealing program offering various conferences and practical workshops.
APRIL 2015
PIERRE FABRE DERMO-COSMETICS IS LAUNCHING THE FIRST AND ONLY "SKIN DRUG REACTIONS BASE" MOBILE APP.
The app can be used offline with a smartphone, in any location, to access a database listing cutaneous reactions caused by prescription drugs (drug eruptions).
This is the mobile version of the database already available to doctors and pharmacists via the Club dermaweb and Club pharmaweb websites.
MARCH 2015
A partnership agreement between Fudan University and our Group was signed on March 12 in Shanghai to develop student exchanges between France and China and to create a talent pool. In 2013, Pierre Fabre China, along with the prestigious Fudan University, launched the first partnership actions.
SIGNING THE PARTNERSHIP AGREEMENT WITH FUDAN UNIVERSITY
Our Madagascar subsidiary is taking part in a national campaign to combat malnutrition in schools, in partnership with Madagascar's National Nutrition Office. For this project, the 600 primary school pupils in Amboassary will receive schooling on nutrition and hygiene, the construction of a cafeteria and the creation of vegetable gardens to supply the school lunchroom.
CHINA
OUR MADAGASCAR SUBSIDIARY FIGHTS MALNUTRITION IN SCHOOLS IN MADAGASCAR
forumdermatology
23RD -24TH
APRIL 2015
PIERRE FABREDERMATOLOGY FORUM
PALAIS DES CONGRÈS - PORTE MAILLOT - PARIS
LEEM AWARD FOR OUR BIOMASS BOILERWe were awarded the CSR Trophy from the French pharmaceutical companies association LEEM in the "Environment" category for our pioneering process that uses residue from medicinal plants as a source of energy. This Trophy recognizes the biomass boiler we have installed at the main industrial site of Pierre Fabre Dermo-Cosmetics (Eau Thermale Avène, Klorane, Ducray, A-Derma, Galénic, René Furterer, etc.). This is a pioneering industrial project in terms of green energy and the circular economy. Naturactive awarded the
"Origine France Garantie" labelFollowing an extensive audit, Naturactive has been awarded the "Origine France Garantie" (French origin guaranteed) label by AFNOR for its phytotherapy range. Created in 2011, this label is designed to promote French traditional and industrial know-how, and guarantees the origin and place of manufacture of the products.
MARCH 31, 2015 FEBRUARY 2, 2015
KLORANE, A MODEL OF RESPONSIBLE MARKETING
The Desert Date hair care range was cited as a good example of the inclusion of CSR issues in the develop-ment of a dermo-cosmetic product range in the white paper "Succeed with responsible marketing: the winning formulas." The document, which also highlights other CSR approaches, aims to show that the integration of CSR issues constitutes a source of shared value creation.
FEBRUARY 6, 2015
ABCHECK AND PIERRE FABRE PHARMACEUTICALS ENTER INTO A STRATEGIC RESEARCH PARTNERSHIP
AbCheck s.r.o, a wholly-owned subsidiary of Affimed N.V. (Heidelberg, Germany), and Pierre Fabre Pharmaceuticals announced that they have expanded their ongoing col-laboration through a strategic research partnership in the field of human antibody discovery and optimization. Under the expanded agreement, AbCheck will use its proprietary human antibody discovery and optimization platform technologies, AbSieve and AbAccel, to deliver antibodies against two or more targets provided by Pierre Fabre per year over a three-year period.
JUNE 17, 2015
GERMANY: HEMANGIOL® GETS TOP MARKS
The German authorities recognized the effectiveness of Hemangiol® by granting it top marks in the health tech-nology assessment.
FEBRUARY 19, 2015
INDIA: PFDC AND ABBOTT HEALTHCARE RENEW THEIR PARTNERSHIP
Pierre Fabre Dermo-Cosmetics and Abbott Healthcare announced the renewal of their collaboration to market the A-Derma, Avène and Ducray brands.
FEBRUARY 27, 2015
A BOOK DEDICATED TO OUR BOTANICAL EXPERTISEÉditions Privat has published a book entitled "Botanical Expertise Pierre Fabre" with the subtitle "the botanical passion behind the pharmaceutical art".Mr. Pierre Fabre developed the Group's expertise for half a century, continually striving to better understand, use and protect the plant kingdom. Today, his philosophy is applied through the Botanical Expertise Pierre Fabre approach, expertise described and analyzed in this work published by Éditions Privat.At the same time, an exhibition on the Group's botanical expertise, entitled "Pierre Fabre, pharmacien botaniste" (Pierre Fabre, pharmacist and botanist) was organized in November 2014 at the Lisbon Museum of Pharmacy (Portugal) and at the Faculty of Pharmacy in Strasbourg (France) from March.
JANUARY 12, 2015
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PHOTO CREDITS:Damien Cabrol/Pierre Fabre Laboratories, Arnaud Späni, Sipa Press, Laurent Frezouls, Xavier Cailhol, Fotolia, Klorane Institute, Profil Organisation AgencyCOORDINATION: Communications Department, Pierre Fabre LaboratoriesDRAFTED BY:Communications Department, Pierre Fabre LaboratoriesPatteBlanche Communications AgencyGRAPHIC DESIGN:PatteBlanche Communications Agencywww.patte-blanche.comLegal deposit: July 2014PRINTING:Art & Caractère - LavaurThis report was printed in a publishing house that has an FSC control chainunder the number FCBA-COC-000078 anda PEFC control chain under the number FCBA/08-00901.Also labeled Imprim’Vert and a member of CulturePapier, the printer’s Corporate Social Responsibility(CSR) has been assessed according toISO 26000, a voluntary contribution toSustainable Development.This report is printed with plant-oil basedinks using an alcohol-free wetting process.Printed on PEFC paper, this product comes from sustainably-managedforests and from controlled sources.Pierre Fabre item code: 361747
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